Brasília – Finance Minister Guido Mantega explained that the R$ 55 billion in Union budget cut in 2012 is aimed at full compliance with the primary surplus stipulated for this year, of R$ 140 billion (US$ 81.4 billion). "It is high saving, but that should guarantee compliancy with the primary surplus we approved in the Budget Guidelines Law [LDO]".
Mantega pointed out that the savings are to cover interest on public debt and, consequently, maintain the trajectory of lower bebt to Gross Domestic Product (GDP) ratio, guaranteeing fiscal consolidation of the country at a moment of global instability.
"This [the cut] means the strengthening of public finances and the reduction of Brazil’s public debt. We currently see several countries in debt. High debt is synonymous with vulnerability and weakness. We want Brazil with a strong Budget,” he said.
*Translated by Mark Ament
