Brasília, August 28, 2003 (Agência Brasil - ABr) - Brazil is resuming growth, and there have been clear signs of economic recovery in various sectors since June and July, according to the Minister of Planning, Guido Mantega, after he submitted the budget proposal for 2004 and the 2004-2007 Pluriannual Plan to the president of the Congress, Senator José Sarney (PMDB-AP).The Minister stated that the first half of the year was difficult but that the economy is recovering and that the most important thing is to look ahead and observe that there is an ascending curve in the third quarter that will grow in the fourth.

"From here on, I only see good news for Brazil in terms of growth," he affirmed. He also observed that the country is recovering from a recession and beginning to regain a rhythm of growth. According to the Minister, the fall in interest rates and the increase in foreign investments were important for the resumption of growth.

With respect to the budget proposal, the Minister affirmed that "There is no budget that can reflect 100% of what this Administration wants, but we are trying to make this budget correspond to the priorities of this Administration, that is, priority on the social area and the resumption of economic growth." He recalled that the budget proposal is as realistic as possible. As for the increase in the minimum wage, the Minister affirmed that there will be real gains, but discussions over the exact amount should be left for next year, since the economy is growing, and there are possibilities that real gains will be even greater.

On the other side, the vice-leader of the Chamber, Deputy Pauderney Adelino (PFL-AM), affirmed that the budget does not include provisions for an increase in the minimum wage and that his party will fight in the Budget Commission for the largest possible real increase.The leader of the PSDB in the Senate, Arthur Virgílio, also from the state of Amazonas, said that the Administration's budget is out of line with promises made during the election campaign.

The reporter of the budget, Deputy Jorge Bitar (PT-RJ), rebutted these arguments and claimed that the budget is realistic and that the economy will grow 3.5-4.0% next year. (DAS)