BRASILIA:The Brazilian government approve cuts to new budget plan of cuts to save more than US$700 million monthly administrative expenses with the aim of further austerity to face the setback in the national economy.
The measures was published in the Official Gazette and Budget Execution Act and specifically affects expenditure on salaries, travel, pensions and benefits of the Executive.
The cut is a temporary measure until Congress approves the Finance Act for 2015.The government of President Dilma Rousseff intends to get an approach to the desired patterns of fiscal tax saving for payment of public debt this year, as in the past 2014, due to the recession, the state was about to renege on commitments to its creditors.
During Rousseff’s first government (2010-2014), the seventh largest economy in the world went from a GDP growth of 7.5 per cent in 2010, to close to zero projection in 2014. The market expects growth this year to 0.5 per cent.In her inaugural speech, Rousefff said that in 2015 her administration would prioritise macroeconomic growth, increased international credibility and investment at the expense of social spending.
