Peruvian fiscal, state reform, and tax policy discussions

Peru continues to navigate discussions regarding fiscal management and structural state reforms. To address a deficit driven by the El Niño phenomenon, security concerns, and social policies, Minister of Economy and Finance Elmer Cuba has projected a 3.5% growth rate for the year and is targeting tax evasion to strengthen revenue. The cabinet aims to generate savings of approximately S/ 2,500 million, while Cuba intends to file unconstitutionality lawsuits against laws regarding pensions for military, police, and retired teachers, as well as certain worker benefits, arguing they are unsustainable.

Efforts to improve state efficiency include proposals to consolidate the 19 existing ministries. Roque Benavides, executive president of Compañía de Minas Buenaventura, suggested creating five ‘super-ministries’—including a Ministry of Production, a Ministry of Social Development, a Ministry of the Future, and a reinforced Ministry of Justice. Minister Cuba confirmed that subsuming small ministries is on the agenda, though it is not an immediate priority compared to the Petroperú crisis and El Niño. Legislator Roxana Rocha supports a progressive reduction based on technical analysis, suggesting portfolios like Environment or Women could be integrated into sectors such as Energy and Mines or Social Inclusion, provided austerity focuses on reducing consultancy and travel expenses.

However, specialist Daniel Hermoza has raised concerns that proposed tax reforms could negatively impact micro and small enterprises (MYPE), specifically through the potential elimination of special tax regimes like the RUS and RER.

In the financial sector, Intercorp Financial Services (IFS) reported a 16% increase in first-semester net profits, totaling S/ 1,187 million. CEO Luis Felipe Castellanos attributed this growth to investments in digital channels, data analytics, and artificial intelligence.