Peruvian Congress approves historic $2.8 billion supplementary credit

The Congress of Peru has approved a historic supplementary credit of over $2.8 billion, intended to finance public investments, sustain state services, and guarantee a smooth democratic transition. The decision was made during the final session of the Permanent Commission, which has been handling legislative duties following the closure of plenary sessions ahead of a national leadership change.

This significant financial package, totaling 9.596 billion Peruvian soles, was approved with 17 votes in favor, 5 against, and 4 abstentions. The funds are earmarked for the "urgent attention of the population's needs." The approved measure includes over 4.16 billion soles from tax revenues and bond issuances, with regional and local governments authorized to allocate an additional 5.435 billion soles from various revenue streams.

Alejandro Soto, president of the Budget and General Account Committee, stated that the modifications "optimize the allocation of public resources without generating greater pressure on the public treasury." The credit aims to strengthen primary healthcare, extend salary increases for teachers, and fund new educational projects. It also includes measures to bolster citizen security and provide financing for emergencies related to the El Niño climate phenomenon.

Despite the Ministry of Economy and Finance's request for the credit, prominent Peruvian economists have voiced strong criticism. David Tuesta, president of the Private Competitiveness Council, described the move as "fiscal revelry" with "names and surnames," accusing the Ministry of abandoning its responsibility to uphold fiscal discipline. This decision marks the closing of a five-year period characterized by populist policies.

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the farra (juerga) fiscal tiene nombres y apellidos. El MEF abandonó su responsabilidad de defender la disciplina fiscal y el Congreso hizo el resto. Así se baja el telón de un nefasto quinquenio marcado por el populi