Dina Boluarte was vacated from the presidency of Peru, after remaining in said position for just over two years and 10 months.. Among the indicators that show the performance of his management, one of those that most marks the country’s deterioration is the fiscal deficit.
In August, the latest data known at the close of this report, the fiscal deficit stood at 2.4% of the Gross Domestic Product, GDP, on the way to meeting the Government’s goal of 2.2% of GDP.
The indicator has been decreasing from 3.5% at the end of 2024, but still not enough to comply with the fiscal rule. Failure to do so would mark a third consecutive year of non-compliance.
With this framework, the role that the new head of the Ministry of Economy and Finance (MEF) will have in the Government of José Jerí, Denisse Miralles will be key to mitigating or aggravating “blows” to public finances, experts warn.
Why did the fiscal deficit worsen?
Claudia Sícolli, director of the Economics and International Business Program at the Peruvian University of Applied Sciences, UPC, sHe pointed out that the deviation in the fiscal deficit responds to activities related to debt to cover Government expenses, among others, linked to the increase in remuneration payments.
Added to this was the fact that, given the lower dynamism of private investment, tax collection was affected.
“Investment and tax collection fall, there is less income. This year investment indicators improved due to metal priceswhich has reduced the gap in the fiscal rule,” he said.
