Government announces $5.77 billion budget freeze

The government announced Friday (Feb. 19) a budget freeze of $5.77 billion in 2016. The number accounts for the definitive amount to be cut. Previously, the government had temporarily limited spending to $3.8 billion until March.

The goal is to attempt to achieve a primary surplus of 0.5% of the country's gross domestic product. According to Planning Minister Valdir Simão, the decision will bring the discretionary costs of the Executive Branch back down to 2009 levels. These are non-mandatory expenditures, to which the government is allowed to make changes. Simão admitted that, despite the lower number last year in absolute figures, the reduction this year is more restraining.

The minister also noted that, in 2015, the government authorized $58 billion in discretionary costs. This year, the amount allotted to these expenditures stood at $57.6 billion.

*Daniel Lima and Mariana Branco contributed to this article.

Translated by Fabrício Ferreira

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