Finance Minister Joaquim Levy’s proposal to reduce Brazil’s budget savings reflects the hard reality that a contracting economy has forced the government to scale back its ambitions for fiscal retrenchment.
Levy said he is targeting a fiscal surplus that excludes interest payments equal to 0.15 percent of gross domestic product this year, a sharp reduction from his original aim of 1.1 percent. He will freeze an additional 8.6 billion reais ($2.7 billion) in spending to meet the new target.
Brazil Energy Insight 
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