The president of the Central Reserve Bank, Julio Velarde, anticipated that the public finance deficit will reach 2.5% in 2023, with which fiscal rules will be broken for the first time in 22 years.
In a press conference, the head of the issuing entity said that the deficit that our country will mark towards the end of 2023 is one of the lowest in the region. For November the deficit was 2.7%.
“In public finances, we are expecting a deficit of 2.5%. Our deficit is quite low compared to other countries, we do not have a particularly high one,” said Velarde.
The fiscal rule for the year 2023 was 2.4%. Previously, the Fiscal Council (CF) had expressed concern about a possible breach of the established limits.
“It is true that some countries have adjusted faster, Chile is the case (-1.6%). But, in general, it is a fairly low deficit. The fiscal rule [en el caso del Perú] imposes 2% for 2024, and 1.5% for 2025”
On the contrary, the banker explained that the recent increase in the fiscal deficit is mainly due to the reduction in current income of the general government.
“This deficit is explained not because the Government has spent more, until November spending has been reducing. In 2021 it was 22.1%; in 2022, it falls to 22%; and until November, it has fallen to 20.9,” he said. Velarde.
“What happens is that current income has fallen much more. While expenses fall 1.1%, current income fell 2.2%,” he added.
Source: Larepublica
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