Substantial cuts in the national budget for Brazil have been announced by the Government. The total sliced off this year’s planned expenditure is a substantial fifty-five billion Reals.
However, the Ministers for Finance and Planning, Guido Mantega and Miriam Belchior, have reassured the country. These cuts to lower inflation and stimulate growth will only impact on administration and bureaucracy they claim and not affect important social programmes such as the hugely-popular Minha Casa Minha Vida affordable housing scheme.
The ministers outlined that about 14 Billion altogether of the total will be the reduction from the ministries of Health, Education, Defence and cities. Mr.Mantega explained that the cuts (up about ten per cent from last year’s) are necessary to allow a drop in interest rates. In turn this would hopefully lead to the government meeting its objective for the ‘primary surplus target’, a yearly aim to help bring down long-term government debt.
On the positive side, the Minister for Finance says he is anticipating for this year growth in the economy of about 4.5 %.but not everyone agrees. For example, many leading banks expect only about 3.5 percent while the UN sees only a GDP increase of two point seven percent.
However, there’s better news from the many infrastructural projects.These are expected by some people to actually sustain the nation’s economy. A key plank in this ‘structure’ will be the recently launched scheme for privatising the airports. And of course, last but by no means least, much is expected from the spin off for preparations for the football World Cup in two years’ time and the Olympics a couple more years after that.
However, the Ministers for Finance and Planning, Guido Mantega and Miriam Belchior, have reassured the country. These cuts to lower inflation and stimulate growth will only impact on administration and bureaucracy they claim and not affect important social programmes such as the hugely-popular Minha Casa Minha Vida affordable housing scheme.
The ministers outlined that about 14 Billion altogether of the total will be the reduction from the ministries of Health, Education, Defence and cities. Mr.Mantega explained that the cuts (up about ten per cent from last year’s) are necessary to allow a drop in interest rates. In turn this would hopefully lead to the government meeting its objective for the ‘primary surplus target’, a yearly aim to help bring down long-term government debt.
On the positive side, the Minister for Finance says he is anticipating for this year growth in the economy of about 4.5 %.but not everyone agrees. For example, many leading banks expect only about 3.5 percent while the UN sees only a GDP increase of two point seven percent.
However, there’s better news from the many infrastructural projects.These are expected by some people to actually sustain the nation’s economy. A key plank in this ‘structure’ will be the recently launched scheme for privatising the airports. And of course, last but by no means least, much is expected from the spin off for preparations for the football World Cup in two years’ time and the Olympics a couple more years after that.
interesting article thanks for sharing
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