Levy Pitches Budget Cuts and Tax Hikes to End Brazil Deficit
- Government plans to cut $6.8 billion in spending next year
- Minister pitches revival of tax on banking transactions
Can Rousseff and Levy Hang On to Power in Brazil?
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Finance Minister Joaquim Levy proposed a new round of spending cuts and tax increases that are designed to close the budget gap and protect Brazil from further credit downgrades.
The government will reduce expenditures by 26 billion reais ($6.8 billion) next year in large part by capping salaries of civil servants and trimming social programs, Levy said Monday. Brazil also plans to raise 28 billion reais in revenue by boosting taxes, including a levy on financial transactions.