Brasília - Speaking at a press conference for radio broadcasters, president Luiz Inácio Lula da Silva said that the decision to raise the primary account surplus target from 4.25% of GDP to 4.50% of GDP was correct and showed that "government economists, led by minister of Finance, Antonio Palocci, were doing their job better than expected."

When the president was asked if the higher primary surplus target was possible because the government had raised some taxes, Lula replied that nowadays in Brazil there are three things everybody thinks he is an expert on: economics, health and soccer. And then he added, "Brazilian economics are beginning to look like a soccer match!"

The president went on to explain that the government's budget for this year had set aside US$140 billion (R$406 billion) for expenditures, but the amount the government wound up with was US$143 billion (R$414 billion). Besides that, the government reached agreements with various economic segments for tax reductions that gave growth a boost. As a result, the government was able to raise the primary surplus target and use the money to reduce the country's debt.

Lula went on to say that planned infrastructure investments for next year remain on track and would not be affected by the higher primary account surplus.

Agência Brasil
Reporter:Carolina Pimentel
Translator: Allen Bennett
09/23/2004