Edla Lula
Reporter - Agência Brasil

Brasília - President Luiz Inácio Lula da Silva, speaking to the nation on radio and TV, said that the good news for 2005 is that Brazil will have its highways, railroads, airports and ports repaired as part of the government's decision to make infrastructure the priority. Lula said that the 2005 budget has set aside US$7.9 billion (R$21 billion) for expenditures, most to be in infrastructure.

Lula cited the Public-Private Partnership (PPP) investment program, recently approved by Congress and signed into law on December 30, as one of the ways the government was going to deal with a gamut of infrastructure problems, from fixing highways to ensuring the country an adequate supply of electricity in the future. "With the PPPs we will repair and improve highways, modernize and expand ports and airports, and build the power plants Brazil will need to continue growing for many, many years," said the president.

Lula added that another reason to begin the year with optimism was the new minimum wage which included a real, above-inflation increase, of almost 10%. It will rise from US$98 (R$260) to US$113 (R$300) in May. "We are doing this without loosening our rigid control of inflation so as to guarantee that worker purchasing power remains strong," he said.

In conclusion, Lula said that social programs will be improved in 2005. He said education, health and housing were areas that would also have expenditures increased in the new year.

(Translation: Allen Bennett)

1/3/2005