Nowadays the global environment poses multiple risks and Peru is prepared to face them through a more expansive fiscal policy and greater public investment in prioritized rapid response projects, the Ministry of Economy and Finance (MEF) reported.
In this sense, the Government’s response of economic policy has to take action on various fronts, since another existing risk is the occurrence of a strong or extraordinary El Nino event, which is why some measures have been preventively adopted.
According to its Revised Multiannual Macroeconomic Framework (MMM, Spanish acronym) 2016 – 2018 report, the delegation of powers seeks to underpin private sector expectations.
This is meant to happen through the implementation of measures aimed at greater transparency and predictability in the provision of public infrastructure through Public Private Partnerships (PPPs) and tax works.
Other measures to be adopted are those designed on a sectoral basis, which allow, among other things, the deployment of the productive diversification plan aimed at closing productivity gaps, the boost to the real-estate market and the trade of services.
The delegation of powers has helped deal with the underutilization of regional and local public investment through the reallocation of resources from public entities with high underutilization (offer of funds) to public entities with effective demand of utilization.
(END) JJN/JJN/RMB/MVB
Published: 9/9/2015