Overview
- The Executive formally submitted the draft Public Budget 2027 to Congress on Friday, September 4, 2026, proposing total spending of S/266,506 million and opening the bill to detailed parliamentary review.
- About 42 percent of the proposal — more than S/112,000 million — is earmarked for recurring pay and pension costs while sector envelopes include education, health, transport and a security allocation the government calls a 'point of inflection'.
- The plan sets aside S/5,000 million as an El Niño contingency and projects growth around 3.4 percent for 2026 with a return toward 4 percent thereafter, framing limited room for new spending beyond the contingency.
- The MEF flagged an estimated tax noncompliance gap near 9 percent of GDP and is asking Sunat to shift focus toward enforcement and audits, plus targeted reform of simplified tax regimes rather than across-the-board rate increases.
- Tax expenditures total roughly S/27,697 million with large items such as IGV exemptions for agriculture and the Amazon (about S/3,992 million); opposition lawmakers have challenged cuts to security, water and regional investment and the budget now faces amendments that could change project funding and service delivery.