Brazil Cuts $4.5 Billion in Spending to Meet Fiscal Goal

Brazil’s government is cutting spending for the second time in two months to help meet its fiscal target as it forecasts slower growth this year in Latin America’s biggest economy.

The government is reducing expenditures by 10 billion reais ($4.5 billion) and lowering this year’s economic growth forecast to 3 percent from 3.5 percent, Finance Minister Guido Mantega said today. The government will meet its primary budget surplus target, which excludes interest payments, of 2.3 percent of GDP this year without reducing investments, he said.