Michel Temer's Administration Sees Recovery & Growth and Reduces Budget Cuts

03/02/2017 - 10h48

The Michel Temer Government's (Brazilian Democratic Movement Party) Economic Team has decided to redo estimates for Budget cuts in view of signs of recovery and renewed growth.

The blocking of budgetary resources should be nearly R$ 30 billion (US$ 9,7 billion) - less than the R$50 billion (US$ 16,1 billion) projection which had been estimated until now.

It will depend upon the balance of receipts and expenses throughout the year, and these resources could be released or cut definitively.

According to the government, tax receipts from several industrial sectors have increased. Among those segments with signs of recovery and growth are food, rubber, plastics and cardboard.

The reduction in receipts has been decreasing month by month. In January, the reduction was on the order of 2,63% compared to the same period last year.

The projection for growth in GDP (total goods and services produced) in 2017 has been raised from 0,5% to 0,7% according to preliminary estimates from the Economics Ministry.

In official projection of 1% from 2016 hasn't been updated yet.

Translated by LLOYD HARDER

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