(Adds comments on fiscal deficit goal, tax exemption, context
LIMA, March 17 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.
(Reporting By Teresa Cespedes, Writing by Mitra Taj; Editing by