(Bloomberg) -- Peru’s congress approved the government’s budget for 2024, with the Andean nation facing a recession and a dip in tax revenue. 

The new budget is worth 241 billion soles ($64.5 billion) and is 12.1% bigger in absolute terms than the previous year’s financial plan, the finance ministry said in a presentation Thursday. 

Peru’s economy is in the middle of a recession that has hurt tax revenue, although the central bank has managed to bring annual inflation down to 4.3% from 8.7% at the beginning of the year. It remains above the 1% to 3% target range but shows the budget increase is significantly outpacing inflation. 

Peru’s economy has contracted for five straight months, although the government has said it expects a recovery toward the end of the year. 

©2023 Bloomberg L.P.