Garcia plans cabinet shuffle after presenting 2011 budget

President Alan Garcia is planning to reshuffle his Cabinet after presenting a plan for next years budget, daily Gestion reported.

Garcia had announced last week his plans to make changes, which may include Economy and Finance Minister Mercedes Araoz, even though the president has previously denied her removal from the Cabinet.

When Garcia makes changes, he will name the new head of the Ministry of Culture. Garcia ratified a law in July to create the ministry.

Peru’s budget for 2011 is expected to increase by 7 percent to more than $31 billion.

Araoz said the 7 percent hike represents a “very low and moderate rate in relation to previous years when it grew by 13 percent or 15 percent and that is a result of the country’s growth rate.” 

The increase in budget includes a rise in salaries for Peru’s armed forces and national police, which was announced by Garcia during his message to the nation on July 28.

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