Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Brazil Cuts 25.6 Billion Reais From Primary Surplus Goal

Nov. 20 (Bloomberg) -- Brazil’s government will cut 25.6 billion reais ($12.3 billion) from its 2012 primary budget surplus target after a drop in tax collection, according to the Planning Ministry.

The central government, which includes the Treasury, the central bank and social security agency, is allowed to discount from its fiscal goal some investments made under its growth acceleration program to avoid reducing public spending amid slower economic growth.

President Dilma Rousseff’s administration reduced taxes on cars, furniture, house appliances and payroll to boost economic growth, in a move that made it harder for the government to meet its fiscal target, Finance Minister Guido Mantega told reporters Nov. 6. Latin America’s biggest economy will expand 1.5 percent this year, less than the U.S. and Japan, according to Bloomberg estimates.

The government, before discounting for investments, targeted a budget surplus before interest payments of 97 billion reais. In the first nine months of the year, the so-called primary surplus was 54.8 billion reais, or 43.5 percent of the 2012 goal.

To contact the reporter on this story: Arnaldo Galvao in Brasilia Newsroom at agalvao1@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.