Peru’s Executive Cabinet has issued an emergency decree to enhance fiscal sustainability and budget efficiency, maintaining the fiscal rule’s current deficit target of 2.0% of GDP. The decree prioritizes government spending, introduces austerity measures for Petroperu, and restricts non-essential expenses. This action addresses the bank’s announcement of a public deficit expansion to 3.0% of GDP. Following the IMF’s recommendations, the government aims to stabilize the fiscal environment without altering the existing fiscal framework.