As part of Peru’s strategy to enter the Organization for Economic Cooperation and Development (OECD)he Ministry of Economy and Finance announced the push for a new order for public spending decisions.
This is the top-down budgeting approach, a reform that seeks to reorder spending decisions and direct public resources primarily toward the highest priorities, according to the ministry.
Under this approach, which is part of the recommendations of the OECD, First, a maximum spending limit is established for the public sector. Then, the necessary resources are calculated to provide continuity to the services and projects underway, and, finally, it is identified if there is fiscal space to address new spending priorities.
Thus, allocation decisions are made within a framework compatible with fiscal objectives.
This seeks to improve the predictability of the budget, manage spending pressures and plan public investments, favoring the completion of projects and the provision of better services for citizens.
During the day of presentation and review of progress of the accession process, the vice minister of Tax authorities, Erick Lahurahighlighted the importance of having a more orderly and predictable budget process, which allows national priorities to be addressed and preserve the sustainability of public finances.
Since 2024, the MEF receives technical assistance from the Swiss Economic Cooperation through the Program for Continuous Improvement of Public Finances – Phase 3 (PMC3), implemented by Helvetas Perú and Fiscus.
As a result of this work, a roadmap was developed to implement the top down approach, led by the Vice Ministry of Financethrough the General Directorate of Public Budget.
The activity was attended by representatives of the public sector, specialists and international organizations, as well as the Swiss ambassador to Peru, Eric Mayoraz, and the high representative of Peru for the accession process to the OECD, Ana María Sánchez.
