LatinNews Daily - 01 September 2026

*Peru’s economy and finance ministry (MEF) has unveiled the government’s budget proposal for 2027, which will now be debated by congress. President Keiko Fujimori’s administration is planning to increase spending by 3.5% compared to the 2026 budget, for a total of PEN266.5bn (US$79.2bn). In a statement, the MEF said that the budget “is consistent with the fiscal deficit rule of 1.4% of GDP for 2027”. The budget is based on forecasts of a 2.6% year-on-year increase in government revenue, while a ceiling of US$2.8bn has been imposed on external borrowing, and a limit of PEN19.2bn placed on domestic borrowing. The MEF said that the budget “prioritises decentralisation”, with local governments set to receive an additional 15.2% in funding next year. Meanwhile, regional governments will see a 1.3% decrease. Key spending priorities include security and justice, with PEN2.8bn earmarked for the criminal justice system; healthcare, with PEN1.3bn set aside for investments in the sector; and education, including PEN1.7bn for university scholarships and education loans.