Lima, Jul 13. -The outgoing and incoming governments in Peru came to odds after representatives of President-elect Ollanta Humala revealed a discouraging economic situation.The issue triggered a heated debate, after a team from Humala's Gana Peru Party charged with the handover of the economic aspect of public administration presented its first report.
The report revealed that measures implemented by the government last year, such as lower sales taxes and spending cuts, slowed down economic growth.
The outgoing government also increased the number of public employees and spent considerable funds in its last weeks, contradicting its claims of a successful, booming economy.
Kurt Burneo, said to be Humala's pick for economy minister, said another factor was the outgoing administration's decision to involve itself in the election campaign. The outgoing administration, particularly Economy Minister Ismael Benavides, repeatedly criticized Humala's campaign proposals, creating uncertainty within the private sector, and a consequent decrease in investment, he sustained.
President Alan Garcia said that the economic situation Humala will inherit when he is sworn in on Jul. 28 is a prosperous one, and that it is unfair for the government to be blamed for the economic slowdown.
He recognized the economic deceleration, but said it was due to uncertainty caused in the private sector, which accounts for 70 percent of the national economy, alluding to Humala's election win. (Prensa Latina)