Brazil unveils reform package to tackle huge fiscal deficit

BRASILIA: Brazilian President Jair Bolsonaro's government unveiled a bundle of wide-ranging reforms on Tuesday , aimed at cutting spending and reducing the size of the state to drive down its chronic fiscal deficit.

One proposal that will not be popular in Brasilia would enable the government to cut public sector employee salaries, hours and benefits, and end job stability for new hires, to reduce the size of the federal payroll that weighs heavily on the budget. Lawmakers, however, say none of the major reforms Bolsonaro's government has proposed will pass this year. There is a tight window in 2020 to pass laws before campaigning starts for local elections in October.

But with interest rates at a relatively low level and the government committed to respecting a federal spending cap, Guedes said Brazil could eventually return to having a primary budget surplus. Even without the tight legislative timetable, the bill seeking approval to privatise Eletrobras may face resistance in Congress, however.

Fascists exterminating Brazilian economy. Looting the Brazilian people. ImpeachmentdoBolsonaroURGENTE

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