Peru's fiscal stability at risk as Congress pushes costly legislation, watchdog says

LIMA (Reuters) -Peru’s economy has long withstood political upheaval but recently approved legislation could threaten its stability, still seen as a “crown jewel,” officials from an independent fiscal agency said on Tuesday.

Alonso Segura, former finance minister and head of the Fiscal Council, an autonomous body that monitors public finances, said Congress has passed 229 laws with adverse fiscal impact since 2021, more than triple the historical average since 2006.

With nine months left in its term, Congress is weighing 352 new bills, mostly tied to spending and public wages. Ten alone would cost 25 billion soles ($7.35 billion) a year, Segura said.

If approved, the measures could push Peru’s fiscal deficit to 5.5% of GDP next year, far above the government’s 2.2% target for 2025, whic