Public expenditure: Reengineering,challenge and reality in a context of regional productive diversification

Abstract

In the present study, a review of the main characteristics of public spending in the Ancash region and its main characteristics is made and to determine whether it is a driver of GDP and the decrease in poverty and extreme poverty indicators and from the results determine the need to change public spending structures to boost economic and social growth and development through productive diversification with emphasis on two tourism and agricultural sectors. The type of research adopted for the development ofthe problem is not experimental, and the study shows that a reengineering of public spending is understood as a restructuring of its components with emphasis on productive sectors of greater significance in the composition of exporting but generating GDP of local added value. Productive diversification that allows changing the economic structure of the department very dependent on the mining sector and on the other hand restructuring the composition of current expenditure vs. capital expenditure to generate more productive infrastructure, permanent employment and medium and long term growth. That the tourism and agricultural sectors, the latter within the framework of agricultural reconversion, are the sectors indicated according to their profitability indexes to promote diversification both in the province of Santa and in the department of Ancash.