The proposed fiscal year 2017 budget amounts to S/142.4 billion (about US$42.26 billion), is 4.7% higher than that of 2016, and focuses on social welfare, Economy and Finance Ministry (MEF) noted on Tuesday.
The draft budget was prepared taking into account the regulation the Parliament passed on Thursday, which imposes a maximum deficit of 2.5% of GDP for 2017.
Likewise, the Finance Ministry said the 2017 draft budget accounts for 20.1% of GDP, and focuses on four pillars: Water and Sanitation, Public Safety, Education and Health.
Water
Water and Sanitation access for all Peruvians is one of the main pillars. A total of S/6.03 million (about US$1.78 billion) has been allocated to sanitation.
Public safety
With regard to public safety and fight against corruption, resources will be provided to support the cash reward system and, therefore, combat organized crime.
Education
On the other hand, the draft budget proposes S/26.18 billion (about US$7.76 billion) —which makes up 18.4% of the total budget— to provide high-quality public education.
Health
As for the health care system, S/1.74 billion (about US$516 million) will be allocated to hospital infrastructure investment projects including 32 hospitals and 265 health facilities.
Infrastructure
The government will support public infrastructure by providing S/15.4 billion (about 4.56 billion) to sectors like transport and communications, farming, housing and urban development, as well as energy and mines.
Sports
Furthermore, a total of S/600 million will be spent on works directly related to the 2019 Pan Am Games and Parapan Am Games in order to expand and build the National Sports Village, the Villa Maria del Triunfo Sports Center, the Sports Village in Callao, and the Pan American Village in Villa el Salvador.
(END) NDP/MDV/RMB
Published: 8/30/2016