Brazil needs extra $157 bln by 2030 to avert crisis, study shows

Guillermo Parra-Bernal and Alonso Soto – Reuters, 7/21/2015

Brazil’s government needs an additional 500 billion reais ($157 billion) from taxpayers over the next 15 years to put public finances and the national debt on a sustainable path, a private study showed, underscoring the challenge facing a economy grappling with a high tax burden and stagnation.

Spending commitments in education, social security and healthcare that the government assumed after the global financial crisis are adding the equivalent of 0.4 percent of gross domestic product a year to the budget, according to the paper by economists Mansueto Almeida, Marcos Lisboa and Samuel Pessoa.

This year, the government needs to raise over 100 billion reais to meet its goal for the primary budget surplus, or the difference between government revenues and expenses, excluding debt servicing, of 1.1 percent of GDP.

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