Brazil will not free much more '04 frozen spending
Brazil is not planning to free up more big chunks of the 6 billion reais ($2 billion) in spending it froze this year and will speed up public investments in the final quarter, the country's planning and budget minister Guido Mantega said on Tuesday.
Brazil froze the funds in February in its bid to cut debt and has so far freed up all but 2.5 billion reais ($886.5 million) after stronger-than-expected tax income and economic growth.
The center-left government has faced criticism that it is spending too slowly on infrastructure projects and other investments to ensure sustained economic growth.
"I'm not saying I'm not going to free up anything more, but the bulk of it (contingency funds), no," minister Guido Mantega told reporters.
Mantega said the government should complete total projected investment spending of 12 billion reais in 2004.The center left government in September raised its primary budget surplus target to 4.5 percent of gross domestic product from 4.25 percent in a move to cut its deficit and long-term interest rates. ($1 = 2.82 reais).
(From Reuters, October 05, 2004)
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