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30 May 2016, Vanessa Maebara, EMIS Editor

Meirelles proposes cap to produce savings in GDP

Finance, Henrique Meirelles, will formalize a constitutional amendment proposal, for setting a cap on the federal government's primary spending, to produce savings of 1.5% to 2% of GDP in up to three years and which will not be allowed to rise more than inflation.

According to Valor Economico International, in order to adhere to the spending cap, the government will be able to cut expenditures with health, education, pensions and welfare benefits. The package prepared by Mr. Meirelles also removes funds from the Brazilian Development Bank (BNDES) and the Sovereign Fund, loosens rules for equity investments of Petrobras in pre-salt oil explorations and forbids new increases in federal subsidies.

Sign in and read the full article in emis.com Original source: Valor Economico International