UPDATE 1-Peru plans budget raise in 2016 as economic outlook dims
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LIMA Aug 31 (Reuters) - Peru's President Ollanta Humala asked Congress to approve a budget for 2016 that would be 6 percent bigger than this year's budget blueprint amid signs economic growth this year and next will be weaker than previously expected.
Peru's copper and gold mining-powered economy is now seen expanding 3 percent this year, slower than a previously forecast 3.5 percent to 4.5 percent, and 4.3 percent in 2016 as low global metal prices continue to weigh.
The finance minister called the 138.49 billion soles ($43.28 billion) budget proposal "austere" even though it was 6 percent higher than the 2015 budget passed by Congress last year.
Earlier, Peru raised its 2015 fiscal deficit forecast to 2.7 percent of gross domestic product.
Peru, which relies on Chinese demand for its metal exports, forecasts a $2.7 billion trade deficit in 2015 and 2016, the government said. ($1=3.2 soles) (Reporting by Marco Aquino and Mitra Taj; Writing by Richard Lough; Editing by Chizu Nomiyama and W Simon)
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