Provincia Constitucional de Callao 1
Peru is a democratic and unitary republic. Within the local level are the district and provincial municipalities, the latter have greater territorial extension, designated competencies and assume coordination tasks among their respective district municipalities.
Currently, municipalities legally have economic, political and administrative autonomy. However, although municipalities can create, regulate and exempt contributions and fees, they do not have the same power with respect to tax regulations. Their main income, according to the National Institute of Statistics and Informatics of Peru, comes from transfers from the central government, with figures such as the Municipal Compensation Fund, the Canon and Sobrecanon and other transfers, in that respective order of importance.
The other main sources of income are financing, current and capital revenues. Within taxes, the most important revenue is the property tax destined to district municipalities.
Regional governments, like municipalities, depend to a large extent on transfers from the Central Government, but unlike them, they do not have taxes assigned exclusively to their revenues.
Urban and territorial planning in Peru is carried out at the national, regional, and local levels by the authorities of the national government, the departmental and municipal governments (provincial and district). Goals are achieved through various laws, decrees and regulations that establish various programs and plans. The National Development Strategic Plan - Bicentennial Plan: Peru by 2021 establishes a comprehensive vision of the country's development including important aspects in territorial planning issues such as regional development, infrastructure and housing. At the local level, the Territorial Conditioning Regulation presents a set of urban and territorial planning instruments for the provincial and district municipalities, allowing progress in the area.