Peru to close 2021 with largest public investment in its history
Lima, 23 Dec. (EFE) .- Peru will close 2021 as the year of the largest public investment in its history, amounting to some 36,000 million soles ($ 8,900 million) without going outside the expected range of its budget deficit, which is expected at 3%, as announced Thursday by its Minister of Economy and Finance, Pedro Francke.
In a conference in which he offered a review of the economic results of 2021, Francke stressed that public investment increased by 22%, a rate “well above the decline recorded in 2020”.
âThere is no policy of excessive spending. When preparing this year’s budget, it was expected that the budget deficit would be 6.2% of gross domestic product (GDP) and ultimately be 3%. This government reduced the deficit in the middle. Talking about overspending is not true, âFrancke said.
“Peru will have one of the highest growth rates in Latin America with the largest reduction in the budget deficit of the entire region,” he added, noting that the forecasts of the Ministry of the Economy are that the GDP will increase by 13% in 2021, still below the forecasts of the Central Bank, which forecasts 13.2%.
For Francke, the sustained control of the budget deficit and solid public finances have enabled the government to issue this year bonds of 4,000 million dollars and 1,000 million euros “at the lowest interest rates in the whole of the world. ‘Latin America “.
This public spending stems from “a significant increase in government revenue”, mainly due to record exports to be recorded this year, amounting to some 61 billion dollars, thanks in part to the new round of high prices for metals. like copper, of which Peru is the second largest producer in the world.
Likewise, Castillo’s rise to power resulted in the payment of various debts that the tax authorities demanded from large mining companies such as Buenaventura, Cerro Verde and Las Bambas, which together amounted to nearly 4,000 million soles. (approximately $ 1,000 million).
Among the public spending made by the government of left-wing President Pedro Castillo, who came to power in July, the Minister of the Economy highlighted the delivery of the Yanapay Bond, a subsidy of 350 soles (about $ 86.70) to people living in poverty. to revive domestic consumption.
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