Brazil’s increasingly unpopular president, Dilma Rousseff, has had to negotiate parts of her recently announced austerity measures with skeptical lawmakers, putting in doubt fiscal savings needed to balance Brazil’s budget, newspaper Estado de S. Paulo said on Thursday.
If the government concedes on the three items under discussion, it could reduce proposed spending cuts by up to 14.6 billion reais ($3.8 billion) and lose 6 billion of 45.6 billion it had hoped to get through increased taxes, the paper said without naming any sources.
Rousseff’s embattled government is considering shortening from four to two years the levying of a controversial tax on financial transactions called the CPMF that angered Brazilian industry groups, the newspaper said.
It might also have to reduce from six to three months the postponement of next year’s salary increases for public employees due to the opposition of unions that are threatening to go on strike.
Brazil Energy Insight 
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