Overview
- The government announced the S/18,000 million package on Thursday, October 22, with S/2,500 million set aside for temporary cash bonuses that the administration says will begin in December 2026 and run three to five months.
- Finance Ministry officials say the plan will be financed by a temporary relaxation of fiscal rules and a credit supplement that still needs approval from Congress, raising the projected 2027 deficit to about 2.4% of GDP.
- Measures beyond cash transfers include maintenance of schools and health centers, prioritization of 250 public works already half complete, fuel subsidies, and liquidity support for affected small firms through tax deferrals and Fondo Crecer loans.
- The government is evaluating use of suspensión perfecta, a legal pause on work with retained employment ties, as a last-resort tool for firms that cannot operate; the main union, CGTP, has rejected that option and demands verifiable worker guarantees and compensation.
- Key implementation risks remain unresolved: MIDIS and sector ministries must define targeting and beneficiary registries, Congress must approve financing changes, and regional authorities will need capacity to execute works and deliver payments on time.