Peru lifts 2017 budget to deal with extreme flooding

LIMA: The government of Peruvian President Pedro Pablo Kuczynski is hiking the 2017 budget by 3 percent in order to fund emergency and recovery efforts as the Andean nation grapples with deadly downpours and extreme 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 extreme weather could fan inflation as some food prices have risen on supply disruptions from farming regions.

The floods have destroyed 1,250 km (777 miles) of highway and blocked parts of the main road linking the interior of the country to Lima, according to the civil defense institute.

More than 56,000 acres of crops have been damaged, including in areas that grow grapes, mangoes and bananas for export.

$1=3.25 soles