Brazil slashes fiscal savings' goals for 2015 and 2016 on plunging tax revenue

Thursday, July 23rd 2015 - 08:02 UTC

Full article 8 comments

Brazil dramatically lowered its fiscal savings goals for 2015 and 2016 on Wednesday due to plunging tax revenues, and announced new spending cuts to underscore its commitment to austerity. The government cut its primary surplus goal for this year to 8.7 billion reais ($2.70 billion), or 0.15% of GDP, from 66.3 billion reais, the equivalent of 1.1% of GDP, originally budgeted. Read full article

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yankeeboy
Junk Bond status coming.

This is still only the beginning of the recession...
Plenty more bad news stories will be rolling out shortly
Jul 23rd, 2015 - 11:30 am - Link - Report abuse 0
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Conqueror
Falling tax revenues. Why would that be? Is this where the dosh from the Petrobras frauds was fed into the government's coffers? Slide it in for the sake of the figues and then take it out again when no-one's looking. Who actually checks whether the primary surplus from 2010 is still there?
Jul 23rd, 2015 - 02:12 pm - Link - Report abuse 0
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ChrisR
Brazil is fast earning it's reputation for being a bunch of crooks and it thought it was doing so well just three years ago.

Pity DumbAss kept on The Liar Mantega as Finance Minister for far too long after he lied to the markets and single handedly caused a rush to capital flight.

Then she fucked Mr market over by insisting the banks MUST lend the deadbeats money to buy cars and keep that industry going AND the result is: In First Place, the Prize for the International FUBAR of the decade goes to Brazil.

Junk status within SIX MONTHS!
Jul 23rd, 2015 - 06:43 pm - Link - Report abuse 0
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Jack Bauer
After slashing the primary surplus goal for this year to 8.7 billion reais ($2.70 billion), or 0.15% of GDP, down from 66.3 billion reais, the equivalent of 1.1% of GDP (originally budgeted), why try to reach a surplus at all ???
Dilma might as well throw the towel in and admit she has no idea what she's doing.
Feel sorry for Levy though, he had no idea of the snake pit he was getting into. One the one side he's got Congress, bent on screwing Dilma, and Brazil into the bargain, and on the other, there's dumbass Dilma, taking her cue from Lula...
Jul 25th, 2015 - 09:10 pm - Link - Report abuse 0
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Terence Hill
”The end of a decade-long commodities boom partly explains the fall from grace of the mining and agriculture powerhouse that grew an average of 4% a year in the last 10 years. Dwindling business confidence caused by interventionist policies during Rousseff's first term, excessive government spending and high inflation have contributed to the sharp slowdown.
http://en.mercopress.com/2015/05/22/brazil-heading-for-full-recession-economic-activity-down-unemployment-up
Jul 31st, 2015 - 01:10 am - Link - Report abuse 0
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Jack Bauer
@5 Terence
So, what's 'your' opinion - presuming you have one - is the current situation due exclusively, to unfortunate unfavourable international conditions or, is Dilma (and the PT, mostly) to blame for it ?
Aug 01st, 2015 - 04:33 pm - Link - Report abuse 0
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Terence Hill
6 Jack Bauer
If it was only the Brazilian economy that had slipped you could lay totally the responsibility on the government. But, with China, Russia, India, Europe and Africa tanking and a strong belief that this an after effect of the US 2009 crisis. Further, that it seems likely that the US economy will tank as well. The largest component seems to be “unfortunate unfavourable international conditions”
Aug 01st, 2015 - 07:20 pm - Link - Report abuse 0
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Jack Bauer
@7 Terence
We'll have to agree to disagree on this one. While I cannot discard the fact that international conditions have taken their toll on Brazil, (commodities), in Brazil's case), nothing will convince me that Brazil wouldn't be riding out the crisis in a less damaging way, had the government done its homework, i.e., serious government - not taking on dozens of thousands of employees to benefit the Party / building the infrastructure - as promised (PAC 1, PAC 2) but way behind and bogged down in corruption / improving social conditions through sustainable means - not handouts , and the list could go on and on....and last but not least : the day Brazil has the majority of the population educated, in the real sense of the word, not just functional illiterates, the PT and the likes of them will cease to exist.
Aug 01st, 2015 - 09:33 pm - Link - Report abuse 0
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