Luciene Cruz Reporter Agência Brasil

Brasília – With the recently announced R$50 billion budget cut (“Orçamento Geral da União”), the government intends to reduce total outlays in 2011 from R$769.9 billion to R$719.9 billion. The objective is to maintain the primary account (revenue minus outlays in the Central Government, without including interest payments) under control and obtain a primary surplus of R$81.8 billion, or 2.9% of GDP. Suffice it to say that the primary surplus is the highlight of the government’s fiscal efforts to pay off the country’s debt.

The government growth target for 2011 is an increase of 5% in GDP.

As for revenue, the government has revised its estimates downward from R$819 billion to R$801.7 billion.

Minister of Finance, Guido Mantega, sums up the latest government economic forecasts saying they are “…more realistic than at any other time.”

Allen Bennett – translator/editor The News in English

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