Congress approved supplementary credit for economic reactivation and facing the El Niño phenomenon

2023-10-21 12:09:36

The plenary session of Congress approved this Friday the replacement text of the bill that grants additional credits to various sectors of the country. The proposal presented by the Executive power It was approved with 88 votes in favor, 4 against and 4 abstentions.

The approved norm allocates 1,581 million soles to finance the expenses associated with economic reactivation, the response to the emergency and the imminent danger due to the occurrence of the El Niño phenomenon for next year.

José Jerí Oré, president of the Budget and General Accounts Commission, pointed out in the support before the plenary session of Congress that the opinion includes and addresses various needs of workers and the population in general. In total there are about 30 modifications.

For his part, Alex Contreras, Minister of Economy and Finance, declared before the press upon leaving the chamber and affirmed that the country will recover from the bad financial moment it is experiencing. In addition, he appreciated the approval of the supplemental credit.

“There are two central blocks: reactivation and preparation for the emergency. These have been the essential objectives, but considering that there were demands from other sectors, a small group was considered that we call other measures, including the measures of Congress, there is an additional spending component , but it is not significant. The two most significant expenses are aimed at preparing ourselves for El Niño and we are going to recover,” stated the head of the MEF.

Contreras stated, however, that the Peruvian economy is solid and that he will recover. However, she said pessimism should not prevail at this time.

“To get out of the complicated context, the supplementary credit undoubtedly helps. As I mentioned at the beginning, the Impulso Mi Perú program helps, the awards we have made for apps are going to be important,” he said.

Peru in recession

The Minister of Economy, Alex Contreras, stated in the afternoon, prior to the vote on the opinion, that he is facing a recession after the constant negative results reported by the economy this year.

“The situation is completely difficult, it is without a doubt a recession, I have no doubt and what we want is to get out of that recession,” Contreras told the press.

Previously, the MEF had ruled out this scenario, which implies a fall of two consecutive quarters, ensuring that it was not correct to talk about a recession while indicating that consumption and employment continued to grow.

“At no time have we underestimated the situation, it was a basically academic discussion, which we recognized at the time as unnecessary,” he said.