Rousseff orders ministries to cut spending by a third

Sunday, January 11th 2015 - 11:39 UTC

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The Brazilian president is committed to send a strong message to investors

Brazilian President Dilma Rousseff has instructed a budget cut which affects 39 ministries, reducing their funds by a third, in order to save a figure estimated at 703 million dollars per month.

The recently-elected head of state attempts to lower spending through a preventive cut, a mission to be conducted by her new Planning Minister, Nelson Barbosa.

This measure will be operative until the Brazilian Congress assembles to discuss the 2015 budget bill, expected to take place on February.

Local analysts considered that the cost-cutting step seeks to show the government’s intention to engage on a fiscal adjustment plan, in order to ensure a primary surplus of 1.2% following last year’s deficit.

According to statements released by the Planning Ministry, the supposed temporary cut is necessary “after the uncertainty over the economy’s development, the fiscal scenario and the legislative calendar, which will reassumed its activities starting on February.”

The new Economy Minister Joaquim Levy has committed to reach a primary budget surplus equal 66.3 billon Reales, a 1.2% of Brazil’s Gross Domestic Product.

Categories: Economy, Investments, Politics, Brazil.

Tags: Brazil, Brazil budget, Dilma Rousseff.

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Tik Tok
Watch the coalition of socialist idiot parties squeal about this, the knives will be out as they stab each other in the back.
Jan 11th, 2015 - 06:07 pm 0
Skip
'Brazil and Russia’s membership of the BRICs may expire by the end of this decade if they fail to revive their flagging economies, according to Jim O’Neill, the former Goldman Sachs Group Inc. chief economist who coined the acronym.

Asked if he would still group Brazil, Russia, India and China together as emerging market powerhouses as he did in 2001, O’Neill said in an e-mail “I might be tempted to call it just ’IC’ or if the next three years are the same as the last for Brazil and Russia I might in 2019!!” '

Seems Brazil's time as economic juggernaut has, as usual, failed to translate into anything long term.

Especially as it, together with China and Russia, starts to suffer negative population growth much much sooner than its economic model can handle.
Jan 11th, 2015 - 07:17 pm 0
Brasileiro
@2 Will you have to see us in hell is great, my buddy. You guys are great speculators and this is making a lot of water in your boat.

Anyway even if Brazil and South America became the world's Bangladesh, West you will no longer have our friendship and where possible undermining your interests, we will.
Jan 12th, 2015 - 10:18 am 0

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