Friday, January 4th 2013 - 23:40 UTC

Brazil appeals to sovereign fund and state companies’ profits to meet 2012 fiscal target

Brazil tapped into its sovereign wealth fund and state companies’ profits in an effort to meet its 2012 fiscal target.

Mantega said that tax breaks meant 45bn Reais less for the Treasury last year

The Treasury will withdraw 8.85 billion Reais (4.3 billion dollars) from its sovereign wealth fund and 4.7 billion Reais in dividends from state-owned bank Caixa Economica Federal, according to a Dec. 31 decision published in the official gazette.

President Dilma Rousseff administration last year cut taxes and stepped up public works spending as it struggled to revive an economy that the central bank estimates expanded by 1%.

Tax breaks reduced federal revenue by 45 billion Reais last year, according to Finance Minister Guido Mantega.

Brazil targeted in 2012 a budget primary surplus (before interest payments), of 139.8 billion Reais, about 3.1% of GDP.

In the first 11 months of the year, the primary surplus was 82.7 billion Reais, or 69% of the goal.

As part of the efforts to meet the goal, the Treasury is also authorized to discount 25.6 billion Reais in infrastructure spending from its target.

9 comments Feed

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1 TipsyThink (#) Jan 05th, 2013 - 10:24 am Report abuse

I look aroúnd a mayhap British lady to marry.. opulence living in Sao Paolo(Santos weekends).

I believe It could be extremely luçrative lífe invéstment for her.
2 Brasileiro (#) Jan 05th, 2013 - 04:46 pm Report abuse
The Federal Tresure accumulate 17 billions of dollars in reserve in this year. So, this money can be contabilized in our “ativos orçamentários”. Why not?
3 ChrisR (#) Jan 05th, 2013 - 07:40 pm Report abuse
@2 Brassiere

I have no idea what “contabilized” in our active budget. Why not?” means.

But I can tell you why not.

“Marvelous Mantega” could not run a piss-up in a brewery given his lamentable record to-date.

Anybody with half-a-brain could tell he was either lying through his teeth or totally incompetent when he announced that Brasil would hit the growth target. It ended up at less than +0.8% and given the fudge factor it was probably MINUS something. I predicted 1% maximum at the time.

Fiddling with the market as the government have done in the last 12 months NEVER works. The market (that is the people who buy things / or not) will decide what happens next AND it is not going to be pretty.

Robbing State Companies as he intends will leave them without money to safeguard the business when the real downturn comes which will be 2013 / 2014 + the way things look.

I am a fan of Dilma but she is making some decisions lately with her heart and not her head. She needs to replace Mantega with someone who does not lie to her and everyone else.

People who have accurate facts from their governments are more capable of deciding their fate than those who have been misled or lied to. The former understand what they are doing, the latter (who lose their money) hate the government when the truth outs.
4 TipsyThink (#) Jan 06th, 2013 - 11:11 am Report abuse
But I am véry experiençed mán sínce the year of 1990.
5 Brasileiro (#) Jan 06th, 2013 - 03:41 pm Report abuse
@3 CryingR,
I do not understand like you. I am not a investor, i am from the people (da massa) and i believe in discipline, “hierarquia”, and work for me, my brothers and all States in Brazil. If Dilma say: Mantega STAY, i agree. If you dont like, run with your money fast and far to my Brasil. And, we dont need “speculation” or money than not work.
6 ChrisR (#) Jan 06th, 2013 - 08:27 pm Report abuse
5 Brasileiro

If you REALLY, REALLY believe that Mantega should be the Finance Minister when he has been so badly wrong on three occasions now and you are representative of 'your' people THEN you are all fucked.

You seem to think that only the likes of Dilma know what to do. Have you ever stopped to think what an average day for this woman must be like? She has the entire country to manage and to succeed she needs people in place who can do a job correctly.

Do you even realise that Mantega has probably caused more damage to your country than any other person in the recent two years, including all the corrupt morons that Dilma is attempting to deal with? No I bet you haven't a clue.

AND WHAT is this crap about me being a speculator. YOU FUCKING NUMBSKULL, I AM AN INVESTOR IN URUGUAY. All of my money is allied to the country itself, can you even understand that?

Speculators typically look for weaknesses in a country’s financial system (and Mantega fits the bill) and then they bet against it with their money.

When they have reached their limit and made their profit they move onto another sick country.

AND how DARE you assume that I have never worked hard. I started at the age of 14 while still at High School; did you go to a High School, one that you had to pass a National exam, to? I bet not.

I then started my training as a professional engineer until the age of 22 and became the youngest EVER process engineer at the largest glass company in Europe at the time. The difference between us is you might work hard but I worked hard AND SMARTER to get where I am. My parents were manual workers (nothing wrong with that) and worked all the lives and retired without anything to show for it. I was determined NEVER to let that happen to me.

So fuck off with you bleeding heart and start thinking for once in your life. DO YOU UNDERSTAND ME NOW NUMBSKULL? I think that just about covers it.
7 Brasileiro (#) Jan 06th, 2013 - 09:39 pm Report abuse
@ ChrisR
Great life, i wait than you to be happy, and your business too. I wait, more yet: STAY far from my country. We dont like people like you. My homeland do not be to sell. Decisions about Brasil, belong to brasilians and ours Brasília staff. Your money can't buy nothing and you have a primitive sense....“Obsoleto”, old and “arrogante”. Take your money.....good dreams “milorde”......hahahaha
8 Anglotino (#) Jan 07th, 2013 - 07:15 am Report abuse
Ouch Brasileiro rarely do I see such a painful public dressing down.

You country (contrary to what you wish) does indeed need investors. Both financial and in the form of skills and knowledge transfer.

You must be very young or either very forgetful. Brazil has been here before. During the 70s it was an emerging economic power with high growth rates. Unfortunately it has not yet fixed some of the rotten foundations that saw it blow it all away and waste over 20 years before starting the boom that just finished.
9 ChrisR (#) Jan 07th, 2013 - 11:23 am Report abuse
8 Anglotino

This person demonstrates the insular traits seen elsewhere on MP and prevalent in AG. He / she just cannot see how the rest of the world sees them.

Quite how he thinks having a Finance Minister who has been so very wrong in the past year and the destruction in confidence in potential investors that it creates, never mind the actual monetary loss that has arisen taking this ‘advice’ by current investors is somehow an asset is beyond me.

And then of course he / she uses what is perceived to be insults to me.

These people just cannot be helped and are the very reason why Brasil will always be a third world country until the populace reach a higher level of education, both at school and gaining practical experience in the real world.

Dilma has a tremendous job on her hands, especially when idiots like this help to destroy what she is working for.

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