Regional governments may use up to 50% of the resources transferred from Foncor

The Peruvian Government made official this Friday the authorization so that regional governments can use up to a maximum of 50% of the resources actually transferred under the Regional Compensation Fund (Foncor), an exceptional measure for fiscal year 2023.

The publication of Law 31936, which repeals the final complementary provision the ninety-eighth of Law 29951 (Public Sector Budget Law for Fiscal Year 2013), will allow the resources and balances to be used to finance the acquisition of heavy machinery, as well as its operation and maintenance expenses.

Likewise, the repeal approved by Congress on November 9 will make it possible to cover the current expense of interventions to respond to emergency activities due to phenomena of natural origin or induced by human action.

The authorized resources cannot be allocated to current expenses related to the payment of salaries, financial compensation, pensions, bonuses, benefits, per diems or concepts of a similar nature.

The Ministry of Economy and Finance (MEF) is also authorized, exceptionally, to make budgetary modifications at the institutional level in favor of various local governments and regional governments up to the sum of S/827 million 626,087.

“The purpose is to guarantee the financing of the execution of investments under the scope of the National Investment Programming and Management System for economic reactivation,” the document states.

Finally, the new law also modifies the content of the financing in favor of the internal sector specifications of Law 31912, which approves supplementary credits for the financing of higher expenses associated with economic reactivation, the response to the emergency and the imminent danger due to the occurrence of the El Niño Phenomenon by 2023.