Fiscal policy for economic growth with equity in Peru 2000-2023

Abstract

The research analyzes the relationship between fiscal policy and economic growth with equity in Peru during 2000-2023. The theoretical framework is based on Keynesian and neoclassical approaches, as well as empirical studies that show the impact of public spending, debt and fiscal deficit on development and equity. Methodologically, a quantitative analysis is used with official macroeconomic data, applying econometric models and historical comparisons to evaluate the evolution of the deficit, debt and tax collection. The results show that Peru has maintained responsible fiscal management, managing to reduce the deficit and public debt after the pandemic, although tax collection remains low relative to the region, mainly due to high levels of tax evasion and avoidance. The analysis reveals a positive relationship between fiscal policy and economic growth with equity, although challenges persist in the redistribution and efficiency of spending. The discussion highlights the importance of strengthening tax collection capacity and fiscal transparency to ensure sustainability and improve equity. It is concluded that, although Peruvian fiscal policy has been key to stability and growth, it is necessary to deepen reforms to achieve more inclusive and sustainable development in the long term.