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The government's request to delegate legislative powers on tax matters has generated controversy. The proposed proposals are far from being a comprehensive reform that allows for the equitable and efficient distribution of the effort that we must make as a society to bear the costs of the pandemic.

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  • Peru

Although the capacity to pay, as expressed by the debt-to-GDP ratios, does not seem unsustainable, the government should promote fiscal consolidation in order to prevent the debt from continuing to increase after 2022, ensuring sustainability in the medium term and the preservation of the Investor Grade.

The combination of weak revenues and robust expenditure generated a significant worsening of fiscal accounts last year: the primary result was negative for the first time ever (-0.6% of GDP), the total deficit reached more than 6.0% of GDP and …