Lima Mayor Renzo Reggiardo has backed a central government decision to reduce certain transit and land transport fines by 90 percent in Peru.
The mayor requested that the executive branch activate budgetary mechanisms to compensate local municipalities for the revenue they will lose under the new discount measure.
Reggiardo described the national policy as appropriate and necessary to provide economic relief to transport operators whose livelihoods have been severely impacted by criminal extortion.
He explained that implementing the fine reduction will have a direct impact on municipal revenues in Lima, the Peruvian capital. According to estimates provided by the Tax Administration Service (SAT) and related municipal institutions, the Metropolitan Municipality of Lima stands to lose slightly more than 40 million soles.
Municipal Budget Concerns
The mayor pointed out that the affected funds had already been factored into municipal planning to address various public needs and municipal services. He called for a broad analysis and central government collaboration with affected local administrations to make up the shortfall and guarantee the continuity of public services.
Reggiardo added that city officials will contact the Ministry of Transport and Communications (MTC) to explore how the financial loss can be offset, noting that municipal funds are already allocated for public infrastructure investments.
In the capital, traffic penalties and municipal collections are overseen by SAT, the municipal agency responsible for processing taxes and traffic fines. Proceeds from these collections help finance local government operations and urban development projects across Lima's districts.
Roadwork Inauguration in South Lima
The mayor made his statements during the inauguration of major road improvement projects on Jose Carlos Mariategui Avenue in Villa El Salvador and Central Avenue in San Juan de Miraflores.
Together, the two infrastructure interventions benefit more than 800,000 residents in southern Lima, known locally as Lima Sur. The works were executed by the Metropolitan Municipality of Lima through its Metropolitan Investment Fund, known as Invermet, as part of efforts to improve road networks and the urban environment.
Reggiardo emphasized that restoring city roadways represents the recovery of public spaces and ensures that area neighborhoods are not surrendered to illegal activities.
The renovation of Jose Carlos Mariategui Avenue required an investment of 13.8 million soles. The project encompassed the comprehensive rehabilitation of 3.19 kilometers of roadway along the stretch between Pachacutec Avenue and Magisterio Avenue.
Central Avenue was rehabilitated with an investment of 9.2 million soles, covering a 2.13 kilometer stretch between Salvador Allende Avenue and Eucaliptos Street.
