As of the first quarter of 2021, the execution of the total public investment accumulated in the three levels of government (national, regional and local) marked an important milestone in its history with a record result amounting to S/. 6.901 million, reported the Ministry of Economy and Finance (MEF).
It specified that this figure is 52% higher than the execution conducted in 2014, which was recorded as the best beginning of the quarter so far.
Public expenditure in March reached S/. 3,743 million, a record figure in that period, which is consistent with the economic recovery strategy promoted by the central government, and its resources are the main engines of growth by boosting the national economy and provide the population with economic and social infrastructure.
It specified that in the second month of 2021 the execution record was also reached in the last eleven years with S/. 2,147 million.
It explained that the accumulated execution of the first quarter of this year represented a progress of 14.2% of the annual total of the modified institutional budget (PIM), which is higher than that percentage achieved in the same period in 2020 (9.7%) and in previous years (2011- 2019). During this period, the highest execution reached 11.3% of the annual budget.
This means that, despite the pandemic, public entities as a whole are committed to the execution of investments as one of the main engines of growth.
The MEF reported that, by government level, in the first quarter of this year the highest execution of the last six years (from 2016 to 2021) showed 12.9% in the national government, 12.4% in the regional government and 17.2% in the local government.
These positive results do not respond to a statistical trend, since the execution of the quarter is markedly higher, and the performance of local governments has been extraordinary.
The positive progress was also achieved, to a great extent, because the MEF promoted in the entities of the three government levels greater support, training, technical assistance and intensive monitoring for the progress of the execution of investments, so that it is interrupted by the extensions of the state of emergency and the quarantine in some departments of the country. Accordingly, it was possible to counteract the negative effects that may be generated on construction and related activities.
It specified that monitoring and follow-up activities were also conducted.
Additionally, the MEF, through the budgetary incentive intended for the execution of investments (REI), promoted the increase of the investment execution capacity of the regional and local governments by establishing budgetary goals for the first quarter of the year.
The budget execution goal of March 2021 for the entities of the three government levels was S/.3,342 million.
The effective execution of public expenditure was S/.3,734 million, which represents a performance level of 112%, above the goal.
During this month, the MEF will continue with its strategy for the reactivation of investments through technical assistance, guidance and permanent training, as well as improvements in Form No. 12-B in physical progress and a report with direct access to the contract execution unit of the Electronic System for Government Procurement and Contracting (Seace).
Its purpose is that the investment execution units in charge record the information on the progress of their investments in a more user-friendly manner, which allows the entities and the MEF to effectively monitor the execution of the investments.