Brazil government cut the Budget increases in an additional $ 368.6 million.

Brasilia - The federal government raised the curtailment of spending $ 55 billion to $ 55.073 billion due to the need to block an additional $ 368.6 million. The change is in the Reprogramming Budget Report from the first two months released by the Ministry of Planning, Budget and Administration. A Fiscal Responsibility Law and the Law of Budget Guidelines provide that the government shall conduct bimonthly reviews of expenditures and revenues of the Federal Republic. The assessment should be forwarded to Congress and to the other public power bodies. Such contingency has occurred, among other factors, due to the estimative of net revenue review of transfers to states and municipalities, which showed a slight decrease from $ 72.9 million due to extension of “Simple National” – (Special System of taxation for small companies to reduce tax rates). According to the report, the government maintained the parameters announced earlier this year. The projection for GDP (Gross Domestic Product) remains at 4.5% and inflation measured by Consumer Price Index (IPCA) of 4.7%.