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Peru: unitary country decentralization

Peru: unitary country decentralization. Peru is a unit with three levels of government (central government, regional governments and local governments), 26 regions and 1.837 districts, decentralization has just 10 years and is in the process of consolidation.

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Peru: unitary country decentralization

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  1. Peru: unitary country decentralization Peru is a unit with three levels of government (central government, regional governments and local governments), 26 regions and 1.837 districts, decentralization has just 10 years and is in the process of consolidation.

  2. Resources in the three levels of government ModifiedInstitutionalBudget (Percentage) The central government collects the General Sales Tax (IGV), income tax, excise tax and customs duties. The central government allocates resources to them according to population. Local governments collect property taxes such as vehicle tax, property tax, etc.. • Regional governments have only proceeds from the central government transfers. Can not create or collect any tax. Also can not borrow without the approval of the Ministry of Economy and Finance. In the case of internal debt must follow the rules of fiscal prudence.

  3. Resource Management In Peru we have facilitated single treasury account for all transactions made ​​through the State Bank and all entities that manage state resources must use the Integrated Financial Management System (SIAF). These two elements SIAF single account and allow very detailed control and management of financial development.

  4. Functions of the three levels of government The functions transferred to the regions are: Utilities and administration basically payments to health and education services, and minor projects. These points are made under the regulations centralized national government ministries. Regional governments have no more space. Other functions such as justice, security or social programs how are you cash transfers to the poor are made by the central government.

  5. Resource transfers to regional governments Transfers made ​​by the central government to regional governments are of three types: • share of taxes as income tax from mining companies (canon). • budget transfers and • Central government discretion.

  6. THANKS

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