Lowering Brazil’s budget goal would prolong downturn

Any attempt by the Brazilian government or Congress to relax spending-reduction goals for this year would inevitably extend the duration of the current fiscal adjustment program, Finance Minister Joaquim Levy said in a newspaper interview published on Sunday.

Some members of President Dilma Rousseff’s government and a few ruling coalition lawmakers want the government to cut its primary budget surplus target for this year from the current 1.1 percent of gross domestic product to stave off the impact of the nation’s steepest downturn in 25 years.

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