15:24 | Lima, Jan. 20. In 2020, Peru s fiscal deficit reached 8.9% of GDP 7.3 percentage points higher than in 2019 given the tax and spending measures adopted to mitigate the impact of COVID-19, as well as the effect of a lower economic activity caused by the pandemic, the Central Reserve Bank (BCR) has reported.
In December 2020, the operations of the non-financial public sector registered a deficit of S/20.15 billion (about US$5.57 billion) a deficit S/9.70 billion (about US$2.68 billion) higher than that recorded in December 2019 as a result of higher non-financial expenditure by the general government (39%), especially current expenditure.
The 6.5% increase observed in the current income of the general government is explained by higher non-tax revenue (30.3%) given the National Fund for the Financing of State Entrepreneurial Activities (Fonafe) transfer to the Public Treasury (S/1.5 billion = US$415 million), while tax revenue on the other hand