Peru’s 2011 proposed budget to increase 8 pct

LIMA, Aug 30 (BestGrowthStock) – President Alan Garcia plans to
increase spending in Peru by 8 percent in 2011, his last year
in office, as tax revenues surge on swift economic growth,
according to the budget his office has submitted to Congress.

Congress has until the end of November to approve the
budget, which forecasts 88.4 billion soles ($31.6 billion) in
spending next year, compared with this year’s budget of 81.8
billion soles, Jose Carrasco, the head of the budget committee
in Congress, told Reuters on Monday.

Peru’s economy is expected to grow about 7 percent this
year, one of the fastest paces in the world. Garcia will leave
office in mid-2011 and cannot run for a second consecutive

The government also submitted a debt financing plan for
2011 to Congress, which forecasts foreign borrowing of about
$2.4 billion, up from $2.1 billion this year, Carrasco said.

Peru has an investment grade rating from major credit
rating agencies, allowing it to borrow for the longer term at
cheaper interest rates.

Domestic borrowing is seen at 3.2 billion soles, more than
2.6 billion this year, Carrasco said.
(Reporting by Patricia Velez; Editing by Kim Coghill)

Peru’s 2011 proposed budget to increase 8 pct