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Brazil's austerity package likely to face uphill struggle

Brazil's austerity package likely to face uphill struggle in congress

Brazil's austerity package likely to face uphill struggle

SAO PAULO (AP) -- A leading political risk firm says that the Brazilian government's new proposed spending cuts and tax hikes are unlikely to receive the congressional approval that most need to be enacted.

The Eurasia Group said in a statement on Tuesday that Brazil's Congress will likely reject most of the measures, "prompting the government to seek other sources of revenue that don't require congressional approval."

Finance Minister Joaquim Levy on Monday announced nearly $7 billion in spending cuts and measures to raise tax revenue by some $10 billion to help balance public finances and win back the support of investors and the business community.

The government wants to revive a financial transaction tax that the speaker of the lower house of Congress Eduardo Cunha says is unlikely to be passed.


Updated : 2021-09-22 05:45 GMT+08:00