Gov't to submit budget bill to Congress today - The federal government will
submit to Congress today the new version of the 1999 Union General budget,
which has been adapted as a result of the financial international crisis and the
Fiscal Stabilization Program (PEF) announced almost two weeks ago. Planning
ministry experts concluded the proposal, which establishes no wage
readjustment for public servants next year, during the weekend.
According to the project, next year the Union will have revenues of R$198.7bn,
while expenditures, excluding the interest rates account, should stand at some
R$182.3bn. The primary surplus is estimated at R$ 16.4bn. The government
expects to have the text approved by the end of the year, the ministry executive
secretary, Martus Tavares, said.
New projects will have resources retained and even fundamental areas will be
affected. The health sector will have its budget reduced by 6.6%, while
education will receive 12.3% less money. The project also predicts the GDP
will shrink by 1% in 1999. In the previous proposal, written before the Russian
crisis, the government expected the GDP to grow by some 4%. Tavares also
said that tax collection is seen to be R$13bn lower in 1999. (O Estado de S.
Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil/ O Globo)
Brazil could receive financial aid this month - Brazil is likely to receive part
of the money of the aid package being negotiated with the International
Monetary Fund (IMF) in the second half of this month. The accord is expected
to be announced today or tomorrow. The amount to be released by the G-10,
the group of 10 richest countries in the world, should also be disclosed today.
The Brazilian government could received as much as US$40bn, but authorities
still have to detail the guarantees they will offer their creditors. The package
should include resources to be received by Eletrobrás and the future revenues of
the electric sector privatization. (O Estado de S. Paulo/ Jornal da Tarde/ Folha
de S.Paulo/ Jornal do Brasil/ O Globo)
Gov't to lose R$ 16.2bn with fiscal incentive - The concession of fiscal
incentive, subsidies and exemptions is seen to empty the government coffers by
R$16.2bn next year. The amount is close to the R$20bn the Union expects to
save with the Fiscal Stabilization Program (PEF). The 520 industries and 2,000
companies in Manaus Free Trade Zone alone will receive fiscal incentive, such
as a lower Excise Tax (IPI), amounting to R$3bn. In the states, the most
common concession is the Value-Added Tax (ICMS) reduction. (O Estado de
S. Paulo/ Jornal da Tarde/ Jornal do Brasil)
BC chairman Franco is attraction in Basel meeting - The Brazilian Central
Bank chairman, Gustavo Franco, was one of the attractions yesterday, in Basel
(Switzerland), in a meeting which gathered 30 representatives of the G-10
countries central banks and private banks. Since Brazil's troubles were among
the main worries to be discussed in the meeting, organized by the Bank of
International Settlements (BIS), Franco was invited to talk about the crisis and
measures taken to solve the difficulties. Federal Reserve (US Central Bank)
chairman, Alan Greenspan, and the European Central Bank chairman, Wim
Duisemberg, also participated in the meeting. (O Estado de S. Paulo/ Jornal da
Tarde)
Brazil wastes R$12.6bn of food annually - Brazil's waste of food amounts to
R$12.6bn annually, according to São Paulo state Agriculture secretary. The
amount would be enough to distribute basket of basic goods monthly to 8.07
million families over a year. On the other hand, research institute Ipea data show
that Brazil had 32 million inhabitants living in extreme poverty in 1993. (Folha de
S.Paulo)
(By Sergio Caldas) |
