Government widens budget cut to $24.74 billion
Faced with lower tax revenues than expected, the government has decided to extend the budget freeze with an additional $2.68 billion cut off discretionary costs for this year's budget. According to the Ministry of Planning, the total budget cut was raised to $24.74 billion.
The move is an attempt to avoid forcing the government to zero out its fiscal effort target or even a negative primary result. The new budget cut figure was set as a result of lowering the net revenue estimate by $14.55 billion and raising the mandatory cost estimate by $3.55 billion.
According to Finance Minister Joaquim Levy, the government is firm in its determination to ensure the government debt will not get out of control. “The increase in the budget cut is clear sign that the government is firm in its austerity commitment, a crucial effort for the economy,” he said.
Translated by Mayra Borges
Fonte: Government widens budget cut to $24.74 billion
