By majority, Congress yesterday approved the Public Budget Law for fiscal year 2024, which amounts to S/240,806 million, which is 12% higher than this year’s Initial Opening Budget (PIA).
Again on the deadline to do so, the Legislature validated the proposal submitted by the Executive at the end of August; although this time they approved it before noon. José Jerí, president of the Budget Commission, maintained that an equitable adjustment was achieved in the distribution of the items in order to address the “most pressing” needs of the country.
Along these lines, S/321 million 612,655 were subtracted from the budget for the national government and S/307 million was increased for the regional governments, so they will now have S/52,746 million. Local governments will also have an additional S/13 million, rounding out a total of S/34,742 million for the new fiscal year.
Thus, the president of the Council of Ministers, Alberto Otárola, assured that the new “historic budget” continues to promote the decentralization of resources to regional and local levels.
For his part, Alex Contreras, head of the MEF, alleged that this “historic budget” is a sign of agreement between the Executive and Congress, which contributes to recovering business confidence, which has deteriorated. “We have to continue working to restore trust, strengthen institutions and create a climate of stability,” he added.
Prioritized sectors
According to the replacement text agreed upon with the MEF, priority is given to sectors such as education, health, transportation, public order, social security and protection. As a result of the debate, there have been slight modifications compared to the first version of the project (see infographic).
Alex Contreras points out that more scholarships will be given to students and resources will be provided to universities, as well as a greater boost to early childhood, social programs and food security.
For example, Pensión 65 will now reach 85% of older adults and Contigo will grow in its scope of coverage from 31% to 42% and an Urban Together will also be implemented. In food programs, S/2,981 million will be injected for programs such as Qali Warma, Vaso de Leche and Comedores Populares; and to alleviate poverty, among its most tangible advances is the S/144 million for the Common Pots —although these required a budget of S/158 million for 2024—.
As reported by La República, despite the warning of the El Niño phenomenon and the economic deterioration, the social protection budget barely covers less than 4% of the total; Even so, the official insisted that “this is the people’s budget.”
Even IEP researcher Carolina Trivelli warned this medium that the document to address the fight against poverty and vulnerability responded to “more of the same”, since the State has not been able to redirect its criteria on new types of poverty.
On the other hand, there are S/6,000 million with which works and measures will be planned in the face of the imminent threat of El Niño: S/4,322 million to prevent and reduce risks; S/796 million to nourish the attention and response capacity.
Congress will have more money for its expenses
Legislator Flor Pablo (not grouped) questioned that the budget establishes items of S/1,084 million for Congress, in a context where poverty will reach a third of the population and it is urgent to combat it.
“In the midst of an economic recession, increasing the congressional budget by more than S/204 million is irresponsible and expresses a total lack of empathy in the face of the country’s great emergencies,” he expressed on his social networks.
Pablo regretted this situation and acknowledged that he voted against, since he believes that the money should have been directed towards rural education, mental health, orphans and the fight against anemia instead of raising it “for an institution that only has 6% of the approval”.
Pablo regretted this situation and acknowledged that he voted against, since he believes that the money should have been directed towards rural education, mental health, orphans and the fight against anemia instead of raising it “for an institution that only has 6% of the approval”.
The word
Alex Contreras, Minister of Economy and Finance
“This is the budget of the people, of the Peruvians (…) There are citizens who are having a bad time and that is why the record budget for social programs and poverty relief.”
Source: Larepublica
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