Peru’s national budget for 2015 is expected to increase by 11 billion soles (US$ 3.95 billion), allocating further resources on key sectors, including education, health and security, the country’s Economy and Finance Ministry (MEF) said Wednesday.
Luis Miguel Castilla, MEF’s head, unveiled the funding for the reported surge in the next year’ budget is set to come from the increased tax revenue, while education and health will account for at least 55 percent (US$ 2.17 billion) of the investment spending.
“The said amount for the agreed-upon priority sectors was announced by the head of Peru’s Administration Ollanta Humala as a major theme in his July 28 speech at the Congress,” the minister said.
“Peru is a creditworthy country as it has very low debt levels,” Castilla said, adding, “The country enjoys a zero net debt position, which places it as one of the most reliable in the world, it was not the case before”.
In statements to the Lima-based radio RPP, the MEF top executive noted that for the above reason the government will not finance the measures announced by external borrowing, but with tax revenue.
Furthermore, he said the bills proposed by the Executive branch, which were presented by the Peruvian leader in his address to the nation on July 28th, are set to meet the demands of the construction sector with the aim of ignite a fundamental boost in the economy.
"Part of the measures is targeted at making more affordable the sector’s interaction with the state’s tax administration agency (Sunat)" Castilla told RPP.
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Published: 7/30/2014