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Cabinet officials

Peru's Public Budget 2026: A Prudent Step Towards Sustainable Growth

Strategic Insights

— 1 min read

Peru's President, Dina Boluarte, and the Minister of Economy and Finance, Raul Perez Reyes, presented the Public Budget 2026, highlighting the country's economic progress and commitment to reducing social and economic gaps. The budget allocates 61.4% to regional and local governments, ensuring a decentralized approach to development. With a focus on strategic investments, macroeconomic stability, and business confidence, Peru aims to leave a better future for its citizens.

Key Takeaways:

  • The Public Budget 2026 allocates 61.4% of the decentralizable budget to regional and local governments, while the National Government will manage 38.6%.
  • The budget ensures fiscal balance and economic growth with responsibility, with a prudent fiscal policy that guarantees sustainability.
  • The economy grew 3.3% in 2024 and is projected to close 2025 with a 3.5% growth rate, one of the highest in the region.
  • 386,000 Peruvians left poverty in 2024, with inflation returning to the target range and business expectations in the optimistic section.
  • The fiscal deficit was reduced to 2.4% of GDP by August 2025, with a closing goal of 2.2%, while the public debt remains at 31.8% of GDP.
  • International reserves equivalent to almost 30% of GDP and controlled annual inflation of 1.1% reinforce the investment grade with a stable perspective.
  • 77% of the investment will finance the continuity of works, prioritizing health centers, schools, water and sanitation projects, irrigation, tracks and paths, among others.
  • 22% of the budget will be oriented to education, 15% to health, 13% to planning and management, 10% to transport, 7% to social protection, and 7% to public order and security.

Statistics:

  • 61.4% of the decentralizable budget allocated to regional and local governments.
  • 38.6% of the decentralizable budget managed by the National Government.
  • 2.3% increase in the Public Sector Budget for fiscal year 2026 compared to 2025.
  • S/ 257 562 million total budget for fiscal year 2026.
  • 386,000 Peruvians left poverty in 2024.
  • 3.5% projected growth rate for 2025.
  • 2.4% fiscal deficit as of August 2025.
  • 2.2% closing goal for fiscal deficit.
  • 31.8% public debt as a percentage of GDP.
  • 30% international reserves as a percentage of GDP.
  • 1.1% controlled annual inflation.

Sources:

  • President Dina Boluarte and Minister of Economy and Finance Raul Perez Reyes.
  • Public Budget 2026 document.
  • Euclid Infotech Pvt. Ltd.
  • Contify.com

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