Peru’s rolling 12-month fiscal deficit falls to 0.9 per cent of GDP in September
Peru’s rolling twelve-month fiscal deficit fell to 0.9 per cent of gross domestic product in September, according to figures cited by its finance ministry. Revenue grew strongly while capital spending contracted. The ministry said the lower deficit created room to respond to economic shocks, pointing to an approximately 8 billion sol supplementary-credit bill already submitted to Congress.
Economics & Markets··Evening
September’s rolling deficit moves below one per cent
Peru’s rolling twelve-month fiscal deficit fell to 0.9 per cent of gross domestic product in September, its Ministry of Economy and Finance said. The ministry cited published central-bank figures in its 18 October statement. The result was below the 1.8 per cent ceiling envisaged for this year.[1], [2]
The rolling deficit had been 1.8 per cent at the end of the first quarter, 1.3 per cent at the end of the second, 1.0 per cent in July and 1.1 per cent in August. These figures describe the changing twelve-month balance rather than September spending alone.[1]
Revenue grows as capital spending contracts
General government current revenue increased 16.7 per cent in real terms in September and 13.7 per cent over the first nine months. Year-to-date income-tax receipts rose 15.4 per cent and general sales-tax receipts 9.8 per cent. The ministry attributed the gains to high metal prices, particularly copper, and domestic activity. Non-financial expenditure rose 3.7 per cent over nine months; current spending increased 8.5 per cent while capital spending fell 9.0 per cent.[1]
A supplementary-credit bill is before Congress
The ministry said the smaller deficit gave the state room for temporary, targeted responses to shocks from El Niño, oil prices and tighter international financing. The government had submitted an approximately 8 billion sol supplementary-credit bill to Congress. Additional measures remained under evaluation, with no detailed new package announced.[1]
