Public investment reaches a new record: 10,659 million soles at the end of April

Statement Ministry of Economy and Finance

May 1, 2023

This is an automated translation of the original press release issued in Spanish

In his presentation in the MEF en Vivo digital space, the Minister of Economy and Finance, Alex Alonso Contreras Miranda, highlighted that the growth of public investment in the month of April grew 16% in relation to the same period in 2022. This amount was becomes the highest level of execution for said month in relation to the last 6 years.

In turn, the minister pointed out that, cumulatively between January and April, public investment registers an execution of S/ 10,659 million, which represents an advance of 17.5% of its Modified Institutional Budget (PIM) and a cumulative growth of 16.3%.

Source: MEF

Along the same lines, he highlighted that during the month of April 2023, the three levels of government registered growth in execution compared to April 2022. Thus, the National Government executed S/ 1,528 million, registering a growth of 1. 1%; regional governments executed S/ 676 million, growing by 26.8%; and local governments managed to execute S/ 1,402 million, which represents a 31.7% growth, which represents a takeoff in the execution of subnational governments.

Measures to boost public investment

Within the framework of the Con Punche Peru plan, from January 20 to date, the multidisciplinary teams of the MEF have visited all the country's departments in person, holding follow-up meetings and technical support to regional and local governments in order to establish together strategies to improve execution risk management, ensuring the continuity of the physical execution of investments; propose a prioritized portfolio of projects that can be completed in the short term; establish milestones for the reactivation of the paralyzed works, as well as define improvements to promote the management of their works.

In these meetings, entities are trained on the main administrative systems such as the National System for Multi-Year Programming and Investment Management (SNPMGI), the National Public Budget System (SNPP) and the National Supply System (SNA). Likewise, the financing opportunities offered by the Invest Fund for Territorial Development (FIDT) are presented, while risks and mitigation of contractual investment management are identified, among others. Along these lines, so far this year, 42 face-to-face meetings and 35 virtual meetings of this type have been held, and this important support for entities is scheduled to continue throughout the year.

On the other hand, within the framework of the BIM Peru Plan, the MEF has been giving constant support to 13 entities or public companies which have already begun the BIM implementation process, in order to develop their investments with this innovative work methodology. These entities are the pioneers in the public sector in the use of this tool to improve and modernize the management of public investment in the country.

Likewise, in order to strengthen the processes for the management of public investment, during the month of April the MEF issued important legal instruments for this purpose. Thus, Supreme Decree No. 074-2023-EF was published, which modifies the Regulations of the SNPMGI, specifying the functions of the Office of Multiannual Investment Programming, clarifying the modifications in the Execution phase of investment projects and IOARR , and explaining about the registration of investment projects and IOARR in the Investment Bank.

Along the same lines, the General Guidelines for the formulation and evaluation of investment programs - PROG were published, in order to provide guidelines for proposing investment program initiatives that allow obtaining benefits by managing investments with common and complementary objectives, among The main benefits are: i) the operational and complementary articulation of investment projects, IOARR or other interventions; ii) the possibility of programming, formulating, evaluating and executing a set of investments so that the beneficiaries receive the joint services in their geographical space; and iii) the generation of indirect, intangible benefits or positive externalities, not only in the services that improve but also in the dynamics of the geographic space to be intervened.

Finally, Supreme Decree No. 075-2023-EF was also published, which authorizes a Supplementary Credit in the Public Sector Budget for Fiscal Year 2023 in favor of various local governments that have won the Invest Fund Contest for the Territorial Development - FIDT 2022, for an amount of up to S/ 93,241,536, with the objective of financing the expenses that demand the continuity of the execution of investment projects and the preparation of pre-investment studies at the profile level and technical sheets , of their winning proposals; This seeks to meet the needs of the population and contribute to closing the infrastructure gap.