Brazil’s real declined as Goldman Sachs Group Inc. questioned the viability of proposals to cut spending and raise taxes as the government seeks to reassure investors of the country’s creditworthiness.
Finance Minister Joaquim Levy proposed a new round of fiscal tightening designed to protect Brazil from further credit-rating downgrades after Standard & Poor’s cut to junk last week. The government will reduce expenditures by 26 billion reais ($6.8 billion) next year in large part by capping salaries of civil servants and trimming social programs, Levy said Monday. Brazil also plans to raise 28 billion reais in revenue by boosting taxes, including a levy on financial transactions.
Brazil Energy Insight 
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