Earlier today, Finance Minister Nelson Barbosa announced that 2016’s budget will be slashed by at least US$ 5.9 billion in an rather ambitious fiscal plan. The Mines and Energy, Health and Education Ministries are one taking the lion’s share of the cut. The Mines and Energy Ministry saw its budget reduced by US$ 785 million, while the Health Ministry and Education Ministry took US$ 625 million and US$325 million cuts, respectively.
A downward revision of the Brazil’s GDP for 2016 was announced. A negative 2.9 percent is expected now, compared to an original estimate of minus 1.9 percent. Employment number were also not good at all. Between September and November of 2015 unemployment increased by 41.5 percent compared to the same period in 2014.
Source: Associated Press, February 19 2016