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Montevideo, November 20th 2018 - 18:16 UTC

Brazil's austerity measures to balance the budget start moving in Congress

Thursday, May 14th 2015 - 07:30 UTC
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A week ago, the House narrowly passed a bill tightening unemployment benefits in a test vote for President Dilma Rousseff's efforts to balance fiscal accounts A week ago, the House narrowly passed a bill tightening unemployment benefits in a test vote for President Dilma Rousseff's efforts to balance fiscal accounts
“Passage in the Senate will be easier”, said Senator Romero Jucá from PMDB, Brazil's largest party and key partner in Rousseff's governing coalition “Passage in the Senate will be easier”, said Senator Romero Jucá from PMDB, Brazil's largest party and key partner in Rousseff's governing coalition

Brazil's Congress Lower House passed a bill on Wednesday toughening access to social security pensions, the second measure approved in a week to cut benefits in a drive to reduce a growing fiscal deficit.

 The measure, which still has to clear the Senate, could save public coffers up to 7.5 billion Reais (2.47 billion dollars) a year, mainly by curbing abuse in pension claims. It passed by 277 votes to 178.

A week ago, the Chamber of Deputies narrowly passed a bill tightening unemployment benefits in a test vote for President Dilma Rousseff's efforts to balance Brazil's fiscal accounts, avoid a credit downgrade and restore business confidence.

Both measures were opposed by the country's largest labor union and some members of her Workers' Party. They were watered down in Congress, reducing fiscal savings by about 3.5 billion Reais to an estimated 1.45 billion a year.

Passage in the Senate will be easier, Senator Romero Juca of the center-right PMDB, Brazil's largest party and key partner in Rousseff's governing coalition, told reporters.

Brazil risks losing its prized investment-grade credit rating if it fails to put its finances in order.

Finance Minister Joaquim Levy is seeking to increase government revenues and cut spending to reach a fiscal savings goal of 1.2% of GDP this year, up from a 0.63% deficit in 2014.

Categories: Economy, Politics, Brazil.

Top Comments

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  • ChrisR

    Wait and see!

    May 14th, 2015 - 05:04 pm 0
  • Jack Bauer

    One hell of a lot of noise and negotiating to save piddling amounts.....why don't these f*cking politicians listen to the voices in the streets and cut their absurdly high salaries and benefits....that alone would do the trick......and reduce the number of Ministies, currently at 39.....

    May 14th, 2015 - 10:12 pm 0
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