The Brazilian government will slash its key fiscal surplus goal for the year as tax revenues sink, but plans to unveil fresh spending cuts to show its commitment to austerity, two officials familiar with the decision told Reuters early on Wednesday.
The reduction of the targeted primary surplus of 66.3 billion reais ($20.89 billion) or the equivalent to 1.1 percent of gross domestic product will be announced later on Wednesday, the officials said. Reducing the closely-watched goal shows just how difficult it will be for President Dilma Rousseff to shore up the country’s finances after years of excesses and amid a painful economic downturn.
Brazil Energy Insight 
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