Brazil President Wants Oil Riches to Fund Education. Congress Says No

Oil for educationDilma Rousseff, the president of Brazil, said she has sent to Congress another proposal to earmark all oil royalties collected by the state for public education after lawmakers shelved an earlier effort.

Rousseff made the announcement in a televised Labor Day speech in which she said improving education was vital for Brazil’s development in a highly competitive world.

Last year she proposed earmarking for education all revenue from future oil royalties, which are expected to rise when Brazil taps huge sub-salt fields off its Atlantic coast.

But despite her personal interest legislators suspended discussion of the plan last week after it got caught up in a dispute between Brazil’s states over how to share out the country’s oil wealth.

A presidential press spokesman said he did not know whether the new plan to tie oil royalties to education was different from the first proposal.

Rousseff called on Brazilians to press their legislators to back her effort. In her speech, Rousseff said Brazil achieved record-low unemployment last year, while other countries were losing jobs.

She promised that Brazil’s sluggish economy would return to sustainable growth after more than a year of near-zero economic expansion, and that her government would continue to cut taxes and reduce costs for local businesses and consumers.

Rousseff said her government will not relax its efforts to curb inflation, which in March rose to 6.59%, the highest 12-month rate in 14 years.

“This is a constant, unchanging and permanent battle,” she emphasized.

In related news it was revealed that Brazil’s manufacturing output just barely expanded in April, according to a survey

The HSBC Purchasing Managers’ Index for the Brazilian manufacturing sector fell to a seasonally adjusted 50.8 in April, from 51.8 in March. Still, the index stood above the 50 mark that divides expansion from contraction, where it has remained since October.

Total new orders rose for the seventh straight month, though at the slowest rate since October, while new export orders fell slightly due to weak demand from key export markets.

The data suggest Brazilian industry is barely hanging onto a recovery following a three-year period of mediocre growth due to weak global demand and structural challenges such as low productivity, high taxes, infrastructure bottlenecks and a tight labor market.

A 2.7% drop in output last year contributed to a mediocre 0.9% growth rate for the economy as a whole, though analysts expect a slight improvement in the first quarter this year.

A weekly central bank poll of analysts published recently showed the economy is expected to grow 3.0% in 2013.

Mercopress

 

Tags:

Ads

You May Also Like

Brazilian Police Get US$ 10 Million from the US

The government of the United States intends to contribute around US$ 9.863 million (R$ ...

Little Brazil Is Dead, Long Live Astoria

Take a walk along the busy sidewalks of Little Brazil Street these days and ...

How Cold Heart and Zeal for Rules at Pharmacy Killed Young Brazilian Mother

Salvador, beautiful city, what happened to you? Salvador, Bahia, Brazil, December 14, 2007. Viviane ...

Brazil Seizes Pirated CDs and Cigarettes on Border

An operation by Brazil’s Federal Revenue Service (Receita Federal) in Foz do Iguaçu, Paraná state, on ...

Rio-à-Porter Fashion Salon Generates US$ 294 Million, US$ 18 Million in Exports

Rio-à-Porter, a fashion and design business salon held this month in Rio de Janeiro, ...

Exports to Arabs Grow 345% and They Are Brazil’s 4th Largest Importers

In 2007, exports from Brazil to the Arab countries should continue to grow more ...

Brazil’s Gol Gets Prize for LatAm’s Best and Most Innovative Airline

In a survey of the best Latin American companies Brazilian airline Gol received three ...

Caatinga, Brazil's semi-arid region

Desertification Is Robbing Brazil of Close to US$ 1 Billion a Year

Imagine a country with 937,000 square kilometers and a population of 18.5 million inhabitants ...

Violence-Plagued Brazil Says No to Gun Control in Referendum

Brazilians are voting Sunday on a proposal to ban all gun sales in the ...

Immunity Violation: Bolivia Accused of Doing to Brazil What Evo Morales Complained About EU

Brazilian authorities are saying that Bolivia violated the immunity of a Brazilian Air Force ...