Government announces $6.73 billion cut in 2016 budget
The announcement was made by Finance Minister Joaquim Levy (L) and Planning Minister Nelson Barbosa, at the presidential palace. 
The government announced Monday (Sep. 14) that the 2016 Federal Budget Plan will face a slash of $6.73 billion. The announcement was made by Finance Minister Joaquim Levy and Planning Minister Nelson Barbosa, at the presidential palace. The cut aims to bring the country's primary surplus to 0.7% of its gross domestic product for next year.
Among other moves, the planning minister says, the government is currently proposing that the adjustment in civil servants' pay be implemented only in August next year, and not in January, as is customary.
According to the minister, the measure will bring the 2016 budget down by $1.8 billion. The proposal depends on further talks with civil servants and a bill to be submitted to Congress.
The government will further spare $390 million by suspending civil service admission examinations. Barbosa announced that the measure will be implemented through a change in the Law of Budgetary Guidelines, under deliberation in Congress.
By announcing the cuts, the government expects to regain credibility among international investors. On August 31, the executive branch sent to the National Congress a budget plan for the upcoming year with a deficit of $7.89 billion. A week later, the rating agency Standard & Poor's lowered its grade for Brazil from BBB- to BB+, also removing the country's investment degree, given to countries seen as good payers and safe for investment.
President Dilma Rousseff spent the weekend meeting with ministers to determine where the reductions should take place. The topic was also discussed at a meeting on political coordination held Monday, attended by 14 minister. Vice-President Michel Temer is currently on an official trip to Russia.
Translated by Fabrício Ferreira
Fonte: Government announces $6.73 billion cut in 2016 budget
