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UPDATE 1-Peru lifts 2017 budget by 3 pct to deal with extreme flooding
March 17, 2017 / 5:53 PM / 6 months ago

UPDATE 1-Peru lifts 2017 budget by 3 pct to deal with extreme flooding

(Adds comments on fiscal deficit goal, tax exemption, context on flooding)

LIMA, March 17 (Reuters) - The government of Peruvian President Pedro Pablo Kuczynski is hiking the 2017 budget by 3 percent in order to pay for emergency and recovery efforts after the country was hit by deadly downpours and flooding.

Peru’s finance minister Alfredo Thorne said the 4.4 billion sol ($1.35 billion) increase, which will be published in an urgent decree on Saturday, would not affect his 2017 fiscal deficit target of 2.5 percent of gross domestic product.

The decree will also create a special tax exemption for companies that donate food and other goods for emergency efforts, Thorne said.

At least 60 people have died in weather-related events since December, many in recent days after a sudden warming of Pacific waters near Peru unleashed heavy rains, landslides and flooding.

Kuczysnki said Peru has not seen such extreme rains since the global El Nino weather pattern of 1997-1998.

$1=3.25 soles (Reporting By Teresa Cespedes, Writing by Mitra Taj; Editing by Meredith Mazzilli)

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