The Peruvian government proposes a budget increase of 9% for 2023

LIMA, Aug. 26 – The Peruvian government presented its 2023 budget plan to Congress on Friday, proposing a 9% increase in this year’s initial budget to 215 billion soles ($55.93 billion).

According to the proposal, published on the Congress website, the government expects economic growth of 3.5% next year, as announced Thursday by the Minister of Economy and Finance, Kurt Burneo.

Burneo said it planned measures to revive private spending, increase public investment and restore investor confidence in the country.

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The budget plan also calls for a 3.5% rise in cumulative consumer prices for 2023, well below the 4.9% inflation forecast by the Economy Ministry the previous day.

Peru, the world’s second-largest copper producer, sees mining as its main source of funding, and the government expects copper prices to fall in 2023. The industry frequently suffers protests from local communities, halting or slowing production.

Friday’s budget also projects an average exchange rate for next year of 3.94 soles to the US dollar. As the country faces political uncertainty, with President Pedro Castillo plagued by a wave of corruption allegations, the ground fell to a historic low last October, although it has gradually recovered and has closed Friday up 0.23% at 3.8380/3.841 soles to the dollar.

Along with the budget proposal, the government sent a public borrowing strategy for the coming year, with plans for national bond issues of up to 20.67 billion soles.

The government also plans to conduct debt management operations of up to $6 billion through bond prepayments, debt swaps or swaps, buybacks and internal or external securities issues. .

($1 = 3.8198 soles)

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Reporting by Marco Aquino; Written by Kylie Madry; Editing by Kenneth Maxwell

Our standards: The Thomson Reuters Trust Principles.

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