Brazil Will Cut 50 Billion Reais From 2011 Budget

Brazil will cut 50 billion reais ($30 billion) from this year’s budget as President Dilma Rousseff seeks to help the central bank contain inflation and lower the highest real interest rates in the Group of 20 nations.

The budget cuts, to be detailed next week, will remove all stimuli implemented in 2009 and 2010 to spur the economy during the global financial crisis, Finance Minister Guido Mantega said in Brasilia. Social programs and infrastructure investments will be maintained, while government hiring will be frozen, funding to the state development bank reduced and all ministries forced to trim spending.