LatinNews Daily - 01 September 2025

*Peru’s ministerial cabinet has signed off on the government’s budget proposal for 2026, which will now be debated by congress. The draft budget outlines PEN257.6bn (US$73.0bn) in planned spending, up 2.2% compared with this year. It aims for a fiscal deficit of 1.8% of GDP, down from the deficit equivalent to 2.2% of GDP that the government has aimed for in 2025. Over 50% of spending would go on education, health, transport, social care, public order, and security, according to a statement from the economy and finance ministry. Regional governments would receive an 8.6% increase in funding, and local governments a 3.0% increase. Economy and Finance Minister Raúl Pérez Reyes said that “the 2026 budget is a tool that reflects the vision of a modern and responsible State: decentralised, with clear priorities and focused on reducing inequalities in society and infrastructure”.

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