Lima, April 28, 2021.- The execution of public investment in the three levels of government set a record in the first quarter of this year, reaching a rate of 12.9% (S/. 3,056 million) in the national government; 17.7% (S/.2,787 million) in local governments; and 12.7% (S/7. 1,090 million) in regional governments, informed the Ministry of Economy and Finance (MEF).
Thus, the execution of public investment in the national and sub-national governments between January and March of this year reached its highest level compared to the same period of the last five years.
In the first quarter of 2020, the level of public investment execution in the National Government had reached 11.2%; in local governments; 8.4%; and in regional governments, 10.3%.
"Even though there has been an improvement in the level of execution of public investment spending, there are large disparities between regional governments and municipalities. In this regard, the most important challenge is to promote efficiency in the execution of public investment, which is key to improve the provision of public services and thus improve the quality of life of the population," said the general manager of the Foreign Trade Society (Comex Peru), Jessica Luna.
According to MEF information, at the regional government level, San Martin, Lima, Tacna and Cusco are ranked as the ones with the highest execution, with percentages of 23.7%, 19.9%, 19.1% and 19%, respectively.
Cajamarca (5.5%), Huancavelica (5.5%), Pasco (6%), Ica (9.1%) and La Libertad (9.7%) show the lowest execution levels.
In the case of local governments, the municipalities of Lima are ranked as those with the highest public investment execution, with an average of 24.5%, while the municipalities of Callao and Ancash are ranked as those with the lowest execution, with an average of 10.3% and 13.3%, respectively.
The general manager of Comex Peru asserted that the low level of execution is not precisely due to a lack of resources. "On the contrary, there are more and more resources to invest. However, what is lacking is an efficient management of the authorities in the development of works in favor of the population. This context, unfortunately, can be observed in many regions of the country", said Luna.