LIMA, Nov 28 (Reuters) - Peru's Congress approved on Friday a public-sector budget for 2009 of 72.355 billion soles ($23.34 billion), representing a 1.8 percent increase from this year.
The budget, which passed overwhelmingly, is an attempt to balance the country's needs to save and grow at a time of great global economic uncertainty.
It reflects a drop in the 2009 fiscal surplus outlook to below 1.0 percent of gross domestic product, down from the 2.3 percent of GDP forecast in August.
Congress did not make any major changes to the proposal President Alan Garcia sent it three months ago.
The new budget estimates 2009 economic growth of 6.5 percent and inflation next year of slightly under 3.5 percent, above the central bank's annual target of 2.0 percent, plus or minus one percentage point.
Peru's economy, which expanded some 9.0 percent last year, is one of the fastest-growing economies in the world.
Despite the global slowdown, Peru's finance minister has said he expects the economy to expand by between 9.0 percent and 9.5 percent this year, as domestic demand booms.
Inflation is forecast to close above 6.0 percent this year.
($1=3.1 soles)
(Reporting by Teresa Cespedes and Dante Alva; Writing by Dana Ford) Keywords: PERU ECONOMY/BUDGET (dana.ford@thomsonreuters.com; Tel. +511 221 2130) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The budget, which passed overwhelmingly, is an attempt to balance the country's needs to save and grow at a time of great global economic uncertainty.
It reflects a drop in the 2009 fiscal surplus outlook to below 1.0 percent of gross domestic product, down from the 2.3 percent of GDP forecast in August.
Congress did not make any major changes to the proposal President Alan Garcia sent it three months ago.
The new budget estimates 2009 economic growth of 6.5 percent and inflation next year of slightly under 3.5 percent, above the central bank's annual target of 2.0 percent, plus or minus one percentage point.
Peru's economy, which expanded some 9.0 percent last year, is one of the fastest-growing economies in the world.
Despite the global slowdown, Peru's finance minister has said he expects the economy to expand by between 9.0 percent and 9.5 percent this year, as domestic demand booms.
Inflation is forecast to close above 6.0 percent this year.
($1=3.1 soles)
(Reporting by Teresa Cespedes and Dante Alva; Writing by Dana Ford) Keywords: PERU ECONOMY/BUDGET (dana.ford@thomsonreuters.com; Tel. +511 221 2130) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.