Brasília - The government has decided to raise its primary account surplus target from 4.25% of GDP to 4.50%. The announcement of the decision was made by minister of Finance, Antonio Palocci, following a meeting with president Luiz Inacio Lula da Silva, presidential Chief of Staff, Jose Dirceu, and minister of Planning, Guido Mantega.

By raising the target 0.25 percentage points, the government makes it clear that it intends to economize an additional US$1.4 billion (R$4.3 billion), which is earmarked for debt interest payment. "The higher surplus will allow us to obtain a more solid macroeconomic situation for the country," explained Palocci.

As for the 2005 primary account surplus target, Palocci reports that a decision has not been made yet but that it will be part of the 2005 budget the government sends to Congress.

Agência Brasil
Reporter:Ana Paula Marra
Translator: Allen Bennett
09/23/2004