Brazil Is Spending Less and Finance Minister Is Quite Happy

Between January and November, Brazil’s primary surplus – the savings achieved by the government to ensure debt payments – attained US$ 42.268 billion (98.6 billion reais), equivalent to 5.6% of the Gross Domestic Product (GDP).

According to data released on Friday, December 23, by the Brazilian Central Bank, the consolidated public sector, which includes the accounts of the federal government, states, municipalities, and State enterprises under federal government control, amassed a primary surplus of US$ 1.543 billion (3.6 billion reais) in November.

In an interview the Brazil’s Minister of Finance, Antonio Palocci, admitted that the primary surplus may exceed the government’s year-end target of 4.25%, but he said that this is because states, municipalities, and State enterprises will contribute more than their projected share to meet the target.

He commented that he considers positive the effort made by government leaders to spend less. "I am not going to quarrel with states and municipalities because they are saving more. I will congratulate them."

According to Palocci, contrary to what critics of his policy of fiscal restraint claim, "the availability of investments has not been impaired."

He affirmed that the government’s savings do not limit the ministries’ investments in projects and programs. "The availability of funds for the Ministries has been determined for several months."

The Minister recalled that, historically, December is marked by a "big deficit," since it is the month in which the government makes payment on its investment commitments.

"Now that we’re making all this planning result in a good fiscal situation, better for Brazil, and we are not going to quarrel with the balance. We are not going to quarrel with the fiscal effort, because it is good for Brazil," he underscored.

Agência Brasil

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