Lula: Despite Higher Primary Surplus Brazil Remains on Track

The government has decided to raise its primary account surplus target from 4.25% of GDP to 4.50%. The announcement of the decision was made by minister of Finance, Antonio Palocci, following a meeting with President Luiz Inácio Lula da Silva, presidential Chief of Staff, Jose Dirceu, and minister of Planning, Guido Mantega.

By raising the target 0.25 percentage points, the government makes it clear that it intends to economize an additional US $1.4 billion (4.3 billion reais), which is earmarked for debt interest payment.


“The higher surplus will allow us to obtain a more solid macroeconomic situation for the country,” explained Palocci.

As for the 2005 primary account surplus target, Palocci reports that a decision has not been made yet but that it will be part of the 2005 budget the government sends to Congress.


Lula Praises


Speaking at a press conference for radio broadcasters, president Luiz Inácio Lula da Silva said that the decision to raise the primary account surplus target from 4.25% of GDP to 4.50% of GDP was correct and showed that “government economists, led by minister of Finance, Antonio Palocci, were doing their job better than expected.”

When the president was asked if the higher primary surplus target was possible because the government had raised some taxes, Lula replied that nowadays in Brazil there are three things everybody thinks he is an expert on: economics, health and soccer.


And then he added, “Brazilian economics are beginning to look like a soccer match!”

The president went on to explain that the government’s budget for this year had set aside US$ 140 billion (406 billion reais) for expenditures, but the amount the government wound up with was US$143 billion (414 billion reais).


Besides that, the government reached agreements with various economic segments for tax reductions that gave growth a boost. As a result, the government was able to raise the primary surplus target and use the money to reduce the country’s debt.

Lula went on to say that planned infrastructure investments for next year remain on track and would not be affected by the higher primary account surplus.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

The Ritual Sacrifice of Brazilian President Dilma Rousseff

Brazilian president Dilma Rousseff was sacrificed as a scapegoat for sins and shortcomings widely ...

Brazil’s Central Bank Says Inflation Will Remain Stable

Prices in Brazil, both wholesale and retail, are signaling stability, according to the Focus ...

UN Hears that in Brazil Government Is Main Promoter of Discrimination

The special rapporteur of the United Nations Organization (UNO) on Contemporary Forms of Racism, ...

Brazil’s Embraer Delivers 57 Jets in Third Quarter

Brazilian aircraft-maker Embraer has expanded its deliveries in the third quarter of this year ...

In Brazil, the Boom Days Are Counted

{mosimage}The Brazilian real continues to strengthen against the US dollar, which was recently quoted ...

Chavez Shoots Back in Word War with Brazil and Threatens to Leave Mercosur

Venezuelan president Hugo Chavez said he's willing to withdraw his country's request to become ...

Best-seller Books, Plays and Movies

By Brazzil Magazine PLAYS RIO E Aí, Comeu? (Tell Me, Did You Screw Her?)—Comedy. ...

Wal-Mart Gets into Brazil’s South with a US$ 750 Million Buyout

Mike Duke, Vice- Chairman of Wal-Mart Stores announced the purchase of Sonae’s retail operations ...

Bye-Bye, Song Bird

Born on May 23, 1908 (some experts say it was in 1902), in São ...