Brazil pledges $18.5 bn cuts in effort to woo investors

Samantha Pearson – The Financial Times, 2/20/2014

Brazil has promised to cut $18.5bn in public spending, as a former star of emerging markets struggles to win back investors’ trust.

After cancelling his trip to the Group of 20 meeting in Australia this weekend, in order to finalise the country’s fiscal policy, Guido Mantega, Brazil’s finance minister, announced a new primary surplus goal of 1.9 per cent on Thursday.

To meet this target, the government will have to slash R$44bn ($18.5bn) from the budget planned for this year, relying heavily on cuts to discretionary spending in Congress.

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