Peru’s Public Sector 2016 Budget is responsible and reasonable, since it will make the fiscal deficit easy to manage without further commitments, while economic assumptions are coherent, Latin Pacific Capital Vice-President Emilio Zuñiga affirmed.
“The budget will make fiscal deficit easy to manage and won’t imply further commitments and, macro-economically speaking, is responsible, because there is lower level of revenues and preventing that situation is better than going deep into it,” he was quoted as saying by Andina news agency.
The budget suggests caution in expenditure, since there is no intentions to go deeper into fiscal deficit until signs of global economic recovery are evident.
Zuñiga said the tax collection forecast in the public sector budget is reasonable, taking into account an economic expansion of 4% for next year.
“Estimates predict an eventual fall in commodities and metal prices, and a 4% growth of the economy, which is consistent with what would occur in the world,” he pointed out.
However, he added, doubts will be clarified next year.
According to the economist, the latest figures of Peruvian economy show signs of recovery in its productive activity.
“The recovery will continue as public sector investments speed up throughout next year and as investment restrictions are lifted,” he concluded.
(END) JJN/JJN/RMB
Published: 11/28/2015