Cuts are a necessary effort, Levy says

Finance minister Joaquim Levy said the budget cuts make "an absolutely necessary and indispensable effort." According to him, all the ministries arrived at the decision to cut $6.7 billion. Levy also announced that the government managed to reach the figure "while still fulfilling its obligations."

In the press conference to announce the cuts on Monday (Sep. 14), Levy reaffirmed that it is no longer possible to keep the favorable conditions that firms and individuals have worked under in recent years. "There was a moment. People took this moment. The government created conditions for a more comfortable life at a period, it's impossible to maintain it now," he added.

According to the minister, the budget cut would not be enough to bring the country's primary surplus to 0.7% of its gross domestic product (GDP), hence it is also necessary to take measures to increase revenue, including bringnig back the old Temporary Contribution on Financial Transactions (CPMF, in a rough English translation).

To achieve the primary surplus target and overcome the $7.89 billion deficit forecast in the 2016 budget, the government's final effort should be to cut $16.79 billion.

* Paulo Victor Chagas contributed to this article

Translated by Amarílis Anchieta

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