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Brazil's budget targets ignored by Congress, Levy not happy

Staff writer ▼ | December 21, 2015
Brazil’s Congress approved a 2016 budget with surplus targets lower than what Finance Minister, now ex, Joaquim Levy wanted.
Joaquim Levy
Brazil   Finance minister replaced
Lawmakers approved a budget targeting a primary surplus of 0.5% of GDP, which was below the 0.7% target sought by Levy and far from the surplus of 2% of GDP that the Rousseff administration promised earlier this year.

Stimulus policies and a sharp economic downturn that has diminished tax revenue have caused Brazil’s debt load to balloon to worrisome levels. Economists who agree with Levy’s austerity push have said that Brazil needs to dramatically cut public spending and raise taxes to keep debt from spinning out of control.