Brasilia, 27 (Agência Brasil - ABr) - The Federal Budget secretary of the Ministry of Planning, Budget and Management, Paulo Rubens Fontenele, said yesterday - in a hearing before Congress' Joint Budget Committee - that Brazil surpassed the primary surplus target set for 2001. He said that the surplus was superior in R$ 185.8 million to the target of R$ 29.5 billion, or approximately 1.91% of the Gross Domestic Product (GDP).

According to the National Treasury secretary, Fabio Barbosa, Brazil advanced considerably in the quality of its fiscal adjustments. He stressed that, in 2001, the government managed to conciliate the increase in social spending with costs of the public sector, despite economic turmoil - such as the increase of the interest and currency exchange rates.

Barbosa said still that spending in social areas will increase even more this year. According to him, part of the money collected through the Temporary Tax over Financial Transactions (CPMF) - around R$ 5.5 billion (approx. US$ 2.3 billion) this year - will be used to constitute the Fund to Combat Poverty. (MW)