Brazil’s Haddad Sees Austerity Plan Passing in Congress Nearly Unscathed
- He estimates 1 billion-real loss in savings after bill changes
- Economists aren’t so optimistic, forecasting far bigger losses
Fernando Haddad
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
President Luiz Inacio Lula da Silva’s austerity plan was approved by Brazil’s congress with changes that will reduce its potential savings by just 1 billion reais ($164 million), far less than feared, according to the nation’s finance chief.
Fernando Haddad said his estimate is based on a “review of the numbers” carried out after the plan, designed to save 70 billion reais for public coffers over the next two years, was voted on by the lower house. The watering down of the measures didn’t reach “the level people imagined,” he told journalists on Friday in Brasilia.