Overview
- Alonso Segura, president of Peru's Consejo Fiscal, warned on Monday that dozens of recently approved laws created permanent spending obligations without financing and left the public accounts in disarray.
- The government approved a roughly S/9,695–10,000 million supplementary credit—the largest in recent history—but Segura and analysts say that amount is insufficient to cover commitments such as full gratifications and CTS for CAS workers, which alone exceed S/3,000 million annually.
- Segura urged the incoming administration (taking office July 28) to rapidly reprioritize the budget, consider spending cuts and review filing inconstitutional challenges to costly laws to prevent repeated breaches of fiscal rules and an increased deficit.
- In Madrid the Ministry of Hacienda approved a 2027 spending ceiling of €226,032 million and a fiscal path targeting a 1.8% deficit for 2026, while postponing the regional financing-model decision to the CPFF meeting on July 29 and preparing parliamentary votes on July 14 with a backup date of July 23.
- Political support in Spain is fragmented: Junts has said it will vote against the deficit senda, Podemos conditions its backing on the content of a housing decree, and regional leaders warn the financing proposal favors Catalonia, all raising the risk of parliamentary rejection and tougher cuts for local services.