Brazil may not need added clampdown on spending, sees revenues up

Brazil’s government may not need a further freeze spending to meet fiscal goals because revenues are expected to recover in the second half of the year as the recession-hit economy stabilizes, government officials said on Wednesday.

Local media reports have said the government was considering freezing an additional 20 billion reais ($6.17 billion) in spending to meet its primary budget deficit target of 170.5 billion reais as tax revenues continue to drop. The announcement was expected on Friday with the release of a fiscal balance report.

However, three officials contacted by Reuters said that the hefty deficit target already envisions the drop in revenues, which have started to stabilize and could pick up in the second half.

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