The Peruvian Foreign Trade Society (ComexPeru) reported that a total of S / 11,848 million of the national budget were not invested in 2021.
According to its Public Expenditure Efficiency Report – Results 2021, the regional governments that registered lower budget execution were those of Cajamarca, Puno, Tumbes and Callao, which executed 45%; 45.1%; 47.8% and 55.6%, respectively.
In contrast, the regional governments of San Martín, Lambayeque, Amazonas and Moquegua are the ones that presented the greatest progress with 94.1%; 93.3%; 93% and 90.8%, respectively.
For their part, the local governments with the lowest budget execution are those of Ancash (50.1%), Ica (51.9%), Arequipa (53.2%) and Tumbes (55.9%), according to the presentation from ComexPeru.
Meanwhile, the local governments with the highest percentages are Puno, Cusco and Tacna, with 75.4%; 71.5% and 71.1%, respectively.
“The execution of public investment falls (with the change of governors) and then it takes three or four years to recover. We have to understand, as Peruvians, that this situation is unacceptable. We are not choosing our authorities based on their ability to improve people’s lives. That difference between 50% and 70% execution can save citizens’ lives,” said Juan Fernando Correa, president of ComexPerú, at a press conference.
Comex: poor performance in health
In the second year of the pandemic, and considering the three levels of government (national, regional and local), the sector registered a budget execution of 88%, which leaves an amount of S/ 3,730 million unexecuted. This amount is equivalent to the construction of 18 hospitals.
The health sector was the one that registered the worst performance among regional governments, with only 56.5% of the total budget allocated on average.
“Public investment in the sector is one of the actors that shows a greater lag in its execution, and this is explained by the increase in the budget that was allocated to care for patients, remodel hospitals, etc.”, said Jessica Luna, General Manager of ComexPeru.
In the breakdown, the most critical cases in regional governments in execution of the health budget were presented in Tacna, Puno and Tumbes, with levels of 17.5%; 18.8% and 31.8%, respectively, compared to the good campaign of San Martín (97.7%), followed by Lambayeque (96.4%), Amazonas (95%) and Madre de Dios (95%) .
In the case of local governments, only 53.6% of the total landed budget was recorded, on average, to attend to the health emergency.
Comex: execution in other sectors
The sectors where the lowest budget execution was recorded considering the three levels of government (national, regional and local) were sanitation, agriculture and transportation. In the first, 60.6% of the amount earmarked for such projects was reached. This rate meant an unexecuted balance of S/ 2,292 million.
Meanwhile, in transportation, 77.4% of the budget earmarked for projects in the sector was obtained, with an unexecuted balance of S/ 5,770 million. This amount is equivalent to 2,989 kilometers of paved road.
In the case of the education sector, the budget amount not executed is S/ 3,570 million and is equivalent to more than 161,000 children enrolled in school, according to Comex.
“It’s something that happens every year. As much as we have budget advances above 70%, almost bordering on 80%, when analyzing the results at the departmental level, there is a lot of difference between some Gores and others. If the political cost were not too high, we could think about rethinking this decentralization model. Perhaps, why not, establish the macro-regions”, said Rafael Zacnich, manager of Economic Studies at ComexPerú.
In the breakdown, the regional governments executed an average of 69.3% in transportation, 71% in sanitation, 75.9% in public order and security, while in education and agriculture they did the same at 80.3% and 81.3 %, respectively.
Finally, in the sanitation, agriculture and transportation sectors, local governments only landed 60.8%; 64.1% and 63.4%, respectively. While in the public order and security and education sectors, on average, 64.3% and 66.7% were executed.
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