Fiscal Discipline: Brazil unveils cuts on IMF’s urges
Planning Minister Nelson Barbosa duly announced budget cuts of 69.9 billion reais
RIO DE JANEIRO:
The International Monetary Fund (IMF) urged Brazil to get its fiscal house in order to emerge from five years of low growth as South America’s largest economy unveiled a package of budget cuts in a move to kick start a recovery. Brazil has lost ground since a period of high growth largely fuelled by Chinese-led demand for commodities came to an end and the IMF forecasts GDP will contract by around 1% this year. The downturn has forced leftist President Dilma Rousseff to agree to a measure of austerity, while promising to protect social programs that have lifted tens of millions out of poverty over the past decade. Planning Minister Nelson Barbosa duly announced budget cuts of 69.9 billion reais ($23 billion) designed to put the country on track toward achieving surpluses of 1.2% of GDP this year and 2% in 2016-17.
Published in The Express Tribune, May 24th, 2015.
The International Monetary Fund (IMF) urged Brazil to get its fiscal house in order to emerge from five years of low growth as South America’s largest economy unveiled a package of budget cuts in a move to kick start a recovery. Brazil has lost ground since a period of high growth largely fuelled by Chinese-led demand for commodities came to an end and the IMF forecasts GDP will contract by around 1% this year. The downturn has forced leftist President Dilma Rousseff to agree to a measure of austerity, while promising to protect social programs that have lifted tens of millions out of poverty over the past decade. Planning Minister Nelson Barbosa duly announced budget cuts of 69.9 billion reais ($23 billion) designed to put the country on track toward achieving surpluses of 1.2% of GDP this year and 2% in 2016-17.
Published in The Express Tribune, May 24th, 2015.