BRASILIA – The government of Brazil plans to significantly cut spending on housing, infrastructure and healthcare, while simultaneously cutting subsidies.
In a press conference held on September 14th the Planning Minister of Brazil Nelson Barbosa and the Finance Minister of Brazil Joaquim Levy jointly announced that the government would cut spending and tax breaks in order to help balance the national budget.
In order to reduce the levels of government spending, approximately 1 000 government employees would be fired, while the remaining staff would face salary freezes.
Further, 10 out of the country’s 37 ministries would be closed off, while expenditures on national housing programs, healthcare, broadband infrastructure, and sanitation would be reduced.
The government would also cut the tax subsidies currently offered to the chemical industry, while exporters of manufactured goods would see a reduction in tax breaks.
The previously levied tax on banking transactions will also be reintroduced, however the rate will now be set at 0.2 percent.
In addition the government will raise the rate of capital gains tax to 30 percent.
Photo By: Daniel Garcia Neto