Gov’t budget proposes $5.15 billion for infrastructure works

Peru’s government is looking to invest 14.4 billion soles ($5.15 billion) on infrastructure projects in its budget next year, Economy and Finance Minister Mercedes Araoz said.

Seventy percent of the budget for improving infrastructure services would be for the transportation sector, state news agency Andina reported.

Almost 1.5 billion soles would be for maintaining highways and 2.71 billion soles for highway restoration and improvement work.

The budget is also aimed at preventing inflation in Peru’s economy, Araoz said during a presentation to Congress on Wednesday.

“This budget is precisely prepared to avoid any impact from the economy overheating. We have moved from a fiscal deficit of almost 2 percent last year to 1.5 percent in 2010 and next year it will be at 1 percent to gradually have a fiscal surplus in 2013,” Araoz said.

Peru’s economy has been expanding rapidly after slowing down last year. During the first half of 2010, the GDP grew by 8.03 percent compared to the year-ago period. June’s GDP was up 11.9 percent.

The economy is expected to slow down by the fourth quarter of the year.

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