Brasília,7/142004(Agência Brasil) - Yesterday Congress approved the government's Multiyear Plan (Plano Plurianual) (PPA) for the period 2004-2007 which has a budget of US$592 billion (R$1.8 trillion). Out of that total, 25%, or US$145 billion (R$442.5 billion) is discretionary spending, earmarked for "strategic sectors." The rest, US$461 billion (R$1.4 trillion), consists of entitlement payments, such as debt, social security and the payroll.

Energy, health, education, transportation and housing will get the lion's share of government investments, totalling US$133.4 billion (R$405.6 billion).

The PPA bill approved sets the government's primary surplus target at 4.25% of GDP for the next three years.

It also calls for a reduction of the debt/GDP ratio, currently at 57.6%, to 48.2% in 2007. Senator Sibá Machado, the bill's author (redator), explains that reducing the debt/GDP ratio is essential is if he government is to have more money to spend.

Machado points out that the bill sets GDP growth at 3.5% this year, and calls for an increase of 0.5 percentage points annually between now and 2007, when GDP growth should reach 5%.

"We must enable the government to spend more on energy and transportation over the next few years. We need to provide the agribusiness sector with a reliable transportation grid," said the senator.

Repórteres: Iolando Lourenço e Marcos Chagas
(Translator: Allen Bennett)