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Lima Districts Lag in Infrastructure Spending as Surco Leads the Way
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Only five of LimaS 42 districts have fully utilized their 2025 infrastructure budgets,highlighting a significant disparity in project execution across the Peruvian capital.
As the year draws to a close, a new report from the Ministry of Economy and Finance (MEF) reveals a concerning trend in public spending. While some districts are making significant strides in infrastructure progress, many are falling behind, leaving crucial projects stalled and perhaps impacting economic growth. Santiago de Surco, under the leadership of Mayor Carlos Bruce, stands out as a notable exception, having successfully spent its entire allocated budget for investment projects for three consecutive years.
Surco’s Success Story: A Model for Efficient Spending
The Municipality of Surco has completed several key projects in 2025, including its largest investment in security – a new monitoring center – alongside the construction of four sports complexes, 43 parks, and three neighborhood clubs. Looking ahead to 2026, the administration plans to finalize the Ferrero Coliseum, the restoration of the Juan Grande hacienda, and its flagship initiative: the “superblock” project.
This aspiring “superblock” aims to revitalize the historic center of Surco through paving and restoration efforts, representing a S/15 million investment. “In addition to continuing with the repaving of the main arteries of Surco, the ‘superblock’ is the last major work that our management will leave behind, and shows that with proper planning we can improve the quality of life of our neighbors and recover the colonial origin of Surco town,” Mayor Bruce stated. “We are talking about S/15 million destined to mark a before and after in the municipal works of Lima.”
A Divided Landscape: Performance across Lima’s districts
Beyond Surco, only four other districts – San Isidro, Magdalena, Puente Piedra, and Lurigancho (Chosica) – achieved 100% budget execution for infrastructure projects in 2025. Thirteen additional districts are reporting execution rates above 90%, with expectations that some may reach full utilization by December 31st. Though, a substantial 25 administrations are lagging behind, with execution rates below 80%.
Districts like Ate and Rímac are notably struggling, with execution rates hovering around 50%, while Surquillo has reached only 48.2%. Despite these challenges, the mayor of Rímac, Néstor de la Rosa, remains optimistic. “By December 30, we must reach 95% or more. we have two works that are in full execution and closure,” he said.
Payroll Expenses Show Stronger Performance
The situation regarding payroll expenses presents a more positive picture. All 42 districts demonstrate execution rates above 80%, with 30 exceeding 90%. This suggests that while infrastructure projects face hurdles, municipalities are generally meeting their obligations to employees.
Experts Weigh in: The Importance of Budget Execution
Luis Miguel Castilla, former Minister of Economy and director of Videnza Instituto, explained that the MEF promotes a minimum budget execution rate of 75% across the public sector. While ministries and regional governments typically surpass this benchmark, municipalities often struggle to meet it. He emphasized the importance of monitoring committed execution amounts within municipalities.
Castilla also highlighted a key directive from the MEF, stating that local governments should prioritize completing paralyzed projects due to funding shortages rather than initiating new ones. This approach aims to maximize the impact of available resources and avoid unfinished infrastructure.
the disparity in budget execution underscores the need for improved planning, oversight, and accountability in local government spending. While Surco serves as a positive example, the challenges
