Brazil's Rousseff Cancels Japan, Vietnam Trip Amid Budget Woesby and
Brazilian President Dilma Rousseff canceled an official visit to Japan and Vietnam, the government said, as it tries to resolve a budget crisis.
Rousseff’s administration said Friday that it will trim more than 10 billion reais ($2.6 billion) from this year’s spending budget in a last-ditch effort to meet its fiscal target. The government will provide details of the spending cuts in a decree on Monday, the presidential press office said.
The cuts may not be enough to avoid missing a goal of posting a surplus before interest payments of 66 billion reais in 2015. Finance Minister Joaquim Levy is asking Congress to approve legislation that would relax the target, and legislators are expected to vote on the proposal on Dec. 1. If Congress doesn’t pass the bill, the administration must either meet the original target for a primary surplus or it would violate the budget law.
Rousseff was scheduled to visit Japan from Dec. 2 to meet Prime Minister Shinzo Abe and the Emperor, the Asahi newspaper reported.