Although the national government would administer 72.4% of the total resources, the initial figure would be 4.2% below what was allocated in January 2026, while the participation of local governments would increase by 17%, going from S/261.8 million to S/307.3 million. In contrast, the allocation to regional governments would decrease by 39%, going from S/407.8 million to S/247.7 million in the same period (see graphs).
He Ministry of Housing and the National Institute of Civil Defense (Indeci) They will be the institutions with the greatest prominence within the Executive branch to face the weather events of next year. These two organizations alone concentrate 77% of the budget allocation within the national government and 56% of the total resources that the State as a whole will invest.
Indeci would have the largest year-on-year budget increase (+ S/45.3 million), which also represents an increase of 10% in relation to its initial budget this year. Meanwhile, institutions such as the Ministry of Education are among those that will experience a greater cut (- S/29.7 million).
Subnational scenario
The regional governments, which together with the municipalities will have new authorities from 2027, will receive differentiated financing. Tumbes, Piura, Lambayeque, La Libertad, Áncash, Lima Provinces and Ica, regions highly vulnerable to El Niño They would receive together 26% of what was planned for this level of government (S/64.6 million).
Although the regional government of Piura, one of the first areas to receive the impact of the rains and landslides, appears in second place in the ranking with S/23.9 million, it also registers a 50% drop compared to the resources received at the beginning of this year (S/47.8 million).
For its part, Ica registers the most notable reduction in this group, receiving, preliminarily, S/7.2 million at the beginning of 2027. At the beginning of this year it was assigned S/116 million. (see map).
The scenario is also diverse at the local government level. For example, the 18 Lima districts with “high” and “very high” risk of flooding diagnosed by the Cenepred They will be in charge of a joint budget of S/29.1 million, 20% more than this year. Lurigancho-Chosica, an area with a high incidence of landslides and with 21 active streams, would be the district with the greatest budget increase. The commune would manage S/6.8 million for prevention and response work, a little more than triple what it received this year (S/2.1 million).
Preliminary figures
Could the resources allocated increase as the year progresses? Carlos Casas, former vice minister of Economy, professor and researcher at the Universidad del Pacífico, told ECData that the apparent drop in the budget for PP068 would be relative, given that there are always funds available to draw on.
“There is the contingency reserve that can always transfer resources for that, rearrangements that can be made, that (the 2027 budget for this item) is more or less at the same level could sound worrying; but there are many fiscal tools to which we can resort to obtain more resources. The contingent lines for disasters are close to U$2.5 billion, which are for earthquakes, in the case of the El Niño phenomenon, etc. It will depend on the State whether it activates it or not.”he explains.
How will the election of new authorities impact the speed of response? For Casas, based on the analysis of the figures, the central government would prefer to centralize resources to guarantee a much faster response to eventualities. “It could be a healthy strategy and then those resources could be calmly transferred to local or regional governments”he notes.
This trend is also reflected in the budget for activities focused only on addressing The Child. In support of the public budget bill for fiscal year 2027, the economy minister, Elmer Cubaannounced that the central government would receive S/2,023 million of the S/2,489 million (81%). The most favored entity would be National Infrastructure Authoritywith S/1,047 million in charge.
Mary Mollo, specialist in Disaster Risk Management at ESAN, agrees that the Institutional Opening Budget (PIA) can be significantly modified within the year. “The PIA 2026 (for PP068), which started at S/2,187 million, has currently almost doubled. I see a process of recentralization in the volume of the budget (…). “This also goes against what we would like to understand that the regions want, such as attention to the provinces and regions and districts that are most remote from the country, where the population has structural vulnerability.”he expressed.
Mollo adds that there is currently an observation by the MEF that local governments do not have the capacity to execute in the face of the proximity of a phenomenon that will be the most terrible after 1950. “The country rather needs to understand a new decentralization, where there is not only this process of transferring functions and generating autonomy. It has to rethink how the municipalities should be managed, develop a process of support from the Executive and match the budget distribution with the map of vulnerabilities that the country currently has”said,
