Study Note No. 50: Non-Financial Public Sector Operations - June 2026

BCRP STUDY NOTE
No. 50 – July 17, 2026
1
NON-FINANCIAL PUBLIC SECTOR OPERATIONS: JUNE 20261

Between May and June 2026, according to preliminary information, the annual fiscal deficit decreased from 1.6 to 1.3 percent of GDP. This result is explained both by the increase in current general government revenues, from 19.2 to 19.4 percent of GDP, particularly tax revenues, and by the reduction in non-financial expenditures, from 19.7 to 19.5 percent of GDP, particularly capital expenditures. In June 2026, the non-financial public sector would record a surplus of S/ 98 million, which contrasts with the fiscal deficit of S/ 3.3 billion recorded in June 2025. This result is mainly explained by the 23.0 percent growth in current general government revenues, particularly tax revenues by 33.1 percent, which was partially offset by the 2.4 percent increase in non-financial general government expenditures, particularly current expenditures, as capital expenditures decreased.
I. ANNUAL ECONOMIC RESULT OF THE NON-FINANCIAL PUBLIC SECTOR: AS OF JUNE 2026

1. Between May and June 2026, according to preliminary information, the annual fiscal deficit decreased from 1.6 to 1.3 percent of GDP, due to the increase in current general government revenues, from 19.2 to 19.4 percent of GDP, particularly tax revenues, as well as the reduction in non-financial expenditures, from 19.7 to 19.5 percent of GDP, particularly capital expenditures.
   Chart No. 1
   BCRPData/NESPF202606G1
   1 Prepared by Alberto Palacios, Julio Alvarado, Juan Sánchez, Óscar Flores, José Condori, Joaquín Ulloa and Andrés Medina of the Fiscal Accounts Department. -3.8 -3.9 -4.0 -3.9 -3.4 -3.6 -3.5 -3.3 -2.9 -2.7 -2.6 -2.6 -2.4 -2.4 -2.3 -2.1 -2.2 -2.1 -2.2 -2.1 -1.9 -1.6 -1.3 Jun 24 Jul Aug Sep Oct Nov Dec Jan 25 Feb 25 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 26 Feb Mar Apr May Jun Economic Result of the Non-Financial Public Sector (Accumulated last 12 months - Percentage of GDP) (Accumulated last twelve months - Percentage of GDP) * Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Mar 25 Apr May Jun Sep Dec Jan 26 Feb Mar Apr May Jun NFPS Economic Result -1.6 -8.7 -2.5 -1.7 -2.8 -3.4 -3.3 -2.9 -2.7 -2.6 -2.4 -2.2 -2.1 -2.2 -2.1 -1.9 -1.6 -1.3 Current General Gov. Revenues 19.2 17.4 20.6 21.8 19.4 18.7 18.8 19.1 19.1 19.2 19.1 19.0 18.8 19.1 19.2 19.4 . Tax Revenues 14.4 13.0 16.0 16.9 14.8 14.4 14.6 14.8 14.9 14.8 14.7 14.8 15.0 15.2 . Non-Tax Revenues 4.8 4.4 4.6 4.8 4.6 4.3 4.2 4.3 4.2 4.2 4.1 4.2 4.3 4.2 Non-Financial General Gov. Expenditures 19.6 24.2 21.8 21.7 20.6 20.7 20.7 20.6 20.1 19.9 19.7 19.5 . Current 15.1 19.8 16.8 15.7 15.4 14.6 14.6 14.5 14.6 14.5 14.5 14.3 14.2 14.4 14.3 14.3 . Capital 4.4 4.4 4.9 6.0 5.2 6.1 6.0 6.1 5.6 5.6 5.4 5.3 5.2 Primary Result of Companies and Others 0.1 -0.4 0.2 -0.2 0.0 0.2 0.2 0.3 0.5 0.5 0.2 0.3 0.3 0.4 0.3 0.3 Interest 1.4 1.6 1.5 1.5 1.6 1.7 1.6 1.5

• Preliminary.

BCRP STUDY NOTE
No. 50 – July 17, 2026
2
The growth in current revenues is explained by the higher level of economic activity and favorable export mineral prices, as well as by higher income tax advance payment coefficients, determined in the March-April 2026 regularization campaign, and lower balances in favor of taxpayers, in addition to control and inspection actions by the tax authority. The reduction in non-financial expenditure as a percentage of GDP is explained by the capital expenditure component, mainly in the national government's other capital expenditures item, and, to a lesser extent, in the gross capital formation item of this level of government.
Table No. 1
BCRPData/NESPF202606C1
Compared to December 2025, the annual fiscal deficit decreased from 2.2 to 1.3 percent of GDP, both due to the increase in current revenues by 0.4 percentage points (p.p.) of GDP, mainly tax revenues, and due to the reduction in non-financial expenditures by 0.4 p.p. of GDP, particularly capital expenditures. The dynamism of tax revenues is explained by the aforementioned factors, highlighting the higher collection from income tax on non-domiciled legal entities, domestic VAT, and the Special Mining Tax (IEM), while among non-tax revenues, the higher level of income from mining royalties and profit transfers to the national government by the Central Reserve Bank of Peru-BCRP (S/ 938 million in June 2025 vs S/ 1,648 million in April 2026) and the National Fund for the Financing of State Business Activity-FONAFE (S/ 56 million in May 2025 vs S/ 640 million in April-May 2026) stood out. NON-FINANCIAL PUBLIC SECTOR OPERATIONS ACCUMULATED LAST 12 MONTHS 1/ Millions of soles Percentage of GDP 2024 2025 2026 2024 2025 2026 As of Dec. As of Dec. As of May. As of Jun. As of Dec. As of Dec. As of May. As of Jun.

1. Current General Gov. Revenues 207 396 230 582 245 333 249 257 18.7 19.0 19.2 19.4
   a. Tax Revenues 159 876 179 725 190 805 194 971 14.4 14.8 15.0 15.2
   i. Income 65 731 79 012 84 754 86 900 5.9 6.5 6.6 6.8
   ii. VAT 88 417 94 447 98 737 100 075 8.0 7.8 7.7 7.8
   -Domestic 51 648 55 826 59 447 59 895 4.7 4.6 4.7 4.7 -Imports 36 768 38 620 39 290 40 180 3.3 3.2 3.1 3.1
   iii. Selective Consumption Tax 8 913 9 936 10 685 10 710 0.8
   iv. (-) Refunds 24 218 29 609 29 723 29 758 2.2 2.4 2.3 2.3
   v. Rest 21 034 25 938 26 353 27 044 1.9 2.1
   b. Non-Tax Revenues 47 520 50 857 54 528 54 286 4.3 4.2 4.3 4.2
2. Non-Financial General Gov. Expenditures 229 824 241 743 250 589 251 062 20.7 19.9 19.7 19.5
   a. Current 162 450 173 693 182 795 184 106 14.6 14.3
   i. Remunerations 68 011 73 331 76 755 77 463 6.1 6.0
   ii. Goods and services 63 487 67 263 71 740 71 929 5.7 5.5 5.6 5.6
   iii. Transfers 30 952 33 099 34 301 34 714 2.8 2.7
   b. Gross Capital Formation 54 733 59 024 59 275 59 170 4.9 4.9 4.6 4.6
   i. National Government 22 124 22 294 20 956 20 679 2.0 1.8 1.6 1.6
   ii. Regional Governments 13 541 14 465 15 348 15 311 1.2
   iii. Local Governments 19 068 22 265 22 972 23 179 1.7 1.8
   c. Other capital expenditures 12 642 9 026 8 518 7 787 1.1 0.7 0.7 0.6
3. Primary Result of Companies and Others 2 698 3 965 4 388 3 958 0.2 0.3
4. Primary Result (=1-2+3) -19 730 -7 196 -868 2 153 -1.8 -0.6 -0.1 0.2
5. Interest 18 532 19 230 19 857 19 500 1.7 1.6 1.6 1.5
6. Economic Result (=4-5) -38 262 -26 426 -20 725 -17 347 -3.4 -2.2 -1.6 -1.3
   1/ Preliminary.
   Source: MEF, Banco de la Nación, Sunat, EsSalud, public welfare societies and state-owned companies.

BCRP STUDY NOTE
No. 50 – July 17, 2026
3 the Financing of State Business Activity-FONAFE (S/ 56 million in May 2025 vs S/ 640 million in April-May 2026). The fall in non-financial expenditures as a percentage of GDP was due to the national government's capital expenditure component, in the gross capital formation and other capital expenditures items by 0.3 and 0.1 p.p. of GDP, respectively. Non-financial expenditure, however, continues to expand, although in the second quarter of 2026 the growth rate moderated compared to the first quarter.
II. ECONOMIC RESULT OF THE NON-FINANCIAL PUBLIC SECTOR: JUNE 2026
2. In June 2026, the non-financial public sector would record a surplus of S/ 98 million, which contrasts with the fiscal deficit of S/ 3.3 billion recorded in June 2025.
This result is mainly explained by the 23.0 percent growth in current general government revenues, particularly tax revenues by 33.1 percent, among which stand out income tax on domiciled legal entities; regularization; VAT, both domestic and on imports; Selective Consumption Tax (ISC) applied to products other than fuels; Special Mining Tax (IEM); fines and transfer of detractions. This was partially offset by the 2.4 percent increase in non-financial general government expenditures, reflecting a higher level of current expenditures by 9.5 percent, mainly due to remunerations and transfers, which was mitigated by a 14.2 percent fall in capital expenditures, mainly other capital expenditures.
Table No. 2
BCRPData/NESPF202606C2
NON-FINANCIAL PUBLIC SECTOR OPERATIONS 1/
(Millions of soles)
MAY JUNE FIRST HALF
2026 2024 2025 2026 Var. % 2024 2025 2026 Var. % 26/25 26/25

1. Current General Gov. Revenues 21 593 14 341 17 086 21 010 23.0 102 179 116 873 135 548 16.0
   a. Tax Revenues 16 461 10 959 12 585 16 751 33.1 79 598 91 940 107 186 16.6
   i. Income 6 990 4 827 5 221 7 368 41.1 37 077 44 344 52 232 17.8
   ii. VAT 8 538 6 650 7 452 8 790 18.0 41 981 46 450 52 079 12.1
   -Domestic 5 092 3 886 4 309 4 757 10.4 25 090 27 453 31 522 14.8 -Imports 3 445 2 764 3 143 4 033 28.3 16 890 18 997 20 557 8.2
   iii. Selective Consumption Tax 835 792 896 920 2.7 4 484 4 797 5 570 16.1
   iv. (-) Refunds 2 550 2 770 2 837 2 872 1.2 13 090 15 718 15 867 0.9
   v. Rest 2 648 1 461 1 854 2 546 37.3 9 146 12 067 13 173 9.2
   b. Non-Tax Revenues 5 132 3 382 4 500 4 259 -5.4 22 581 24 933 28 362 13.8
2. Non-Financial General Gov. Expenditures 19 607 17 484 19 676 20 150 2.4 98 888 107 309 116 628 8.7
   a. Current 15 570 12 773 13 787 15 098 9.5 73 892 79 533 89 945 13.1
   i. National Government 10 035 7 997 8 634 9 454 9.5 46 330 49 986 57 584 15.2
   ii. Regional Governments 3 709 3 341 3 513 3 866 10.1 19 374 20 520 22 850 11.4
   iii. Local Governments 1 826 1 434 1 641 1 778 8.4 8 188 9 027 9 511 5.4
   b. Gross Capital Formation 3 958 4 155 4 840 4 734 -2.2 21 316 23 554 23 699 0.6
   i. National Government 1 044 1 855 1 902 1 625 -14.6 8 623 9 878 8 263 -16.4
   ii. Regional Governments 1 252 921 1 336 1 299 -2.7 5 312 5 882 6 728 14.4
   iii. Local Governments 1 661 1 379 1 602 1 810 13.0 7 380 7 794 8 709 11.7
   c. Other capital expenditures 79 555 1 049 318 -69.7 3 680 4 222 2 983 -29.3
3. Primary Result of Companies and Others 122 185 536 106 -1 298 1 580 1 573
4. Primary Result (=1-2+3) 2 107 -2 957 -2 055 966 1 993 11 144 20 493
5. Interest 1 045 1 023 1 225 868 -29.1 9 416 10 149 10 419 2.7
6. Economic Result (=4-5) 1 062 -3 980 -3 279 98 -7 423 995 10 074
   1/ Preliminary.
   Source: MEF, Banco de la Nación, Sunat, EsSalud, public welfare societies and state-owned companies.

BCRP STUDY NOTE
No. 50 – July 17, 2026
4
3. In the first half of 2026, the fiscal surplus would amount to S/ 10.1 billion, an amount greater than that recorded in the same period of 2025 (S/ 995 million). This result is explained by the 16.0 percent increase in current general government revenues, both tax (16.6 percent) and non-tax (13.8 percent).
This was mitigated by the 8.7 percent increase in non-financial general government expenditures across all three levels of government, particularly current expenditures (13.1 percent), whose items recorded double-digit growth rates. To a lesser extent, the higher debt interest service contributed by 2.7 percent, particularly domestic debt (6.9 percent). II.1 GENERAL GOVERNMENT REVENUES
4. In June 2026, current general government revenues (S/ 21.0 billion) grew by 23.0 percent year-on-year, due to a 33.1 percent increase in tax revenues, particularly from the national government (33.7 percent), while non-tax revenues decreased by 5.4 percent.
Chart No. 2
BCRPData/NESPF202606G2
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