Temer Wants to Compensate for Spending Cuts with 'Positive Measures'

05/23/2016 - 10h27

Interim President Michel Temer (PMDB-SP), has asked his team to create an economic package which includes measures to promote investment and growth in the next few months.

As Folha has learnt, Temer told his ministers Henrique Meirelles (Finance) and Romero Jucá (Planning) that he also plans to announce "positive and proactive measures" for the country, beyond those that aim to control public spending.

Initially, the Temer administration's first economic measures were focused on controlling federal spending, such as setting a limit on increases to public expenditures as well as the reduction of other federal expenditures.

According to an assessor, the federal government will enter a new phase and it will be necessary to scale back public spending, which spiraled out of control in the last few years under the Rousseff administration.

That uncontrolled spending led Temer's team to change the fiscal target and predict a year end primary deficit of R$ 170.5 billion (US $47 billion).

The Rousseff administration's forecast placed it at R$ 96.7 billion (US $27 billion).

Translated by SUGHEY RAMIREZ

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