Overview
- The government presented the S/18,000 million plan on Thursday, October 22, allocating S/2,500 million for temporary family bonuses, S/2,000 million for maintenance, S/500 million for fuel subsidies and S/13,000 million for infrastructure.
- Officials said the cash transfers will run roughly three to five months and target four groups: southern highland families at risk of livestock loss, northern households facing heavy rains, residents near rivers and quebradas including areas near Lima, and vulnerable people such as ONP retirees.
- The plan prioritizes 250 public works with more than 50% progress for rapid completion and calls for maintenance of schools, health centers, police stations and roads to prevent costlier future damage and create short-term jobs.
- To ease business liquidity the measures allow deferral of advance income-tax payments for affected firms, release of detracciones balances at Banco de la Nación and credit guarantees through the Fondo Crecer.
- The executive framed the package as a countercyclical use of Peru’s fiscal space, citing a 1.6% fiscal deficit and roughly 30% public debt, but key implementation details such as beneficiary lists, per-household amounts, project selection and the 2027 budget integration remain unpublished.