MADRID, Oct 7 (Reuters) - Spain expects its budget deficit to narrow to 5% of GDP in 2022 from a projected 8.4% this year, while economic growth is set to reach 7%, Budget Minister Maria Jesus Montero said on Thursday at a presentation of the government’s budget proposal for 2022. Buoyed by the injection of European Union rescue funds, the 2022 budget includes record investment of more than 40 billion euros ($46.23 billion). ($1 = 0.8653 euros) (Reporting by Belén Carreño, Inti Landauro and Nathan Allen Editing by Andrei Khalip) Our Standards: The Thomson Reuters Trust Principles.