The Brazilian minister of the Planning, Miriam Belchior, announced a series of measures for the reduction of US$ 30 bi in the expenses of the government. To main of them is the contracting of an external audit for verify the payrolls. A decree will decide a reduction of administrative expense in 2011. The cuts should affect the contracting of new civil servants.
The government estimates a reduction of 50% in daily rates and travels, said Belchior, that participated of the announcement of the cut in the expenses of the General Budget of the Union of 2011, beside the head of the Treasury Department, Guido Mantega. The purchase, reform or rent of property and acquisition of new vehicles for administrative use are prohibited.
According to Mantega, the cut reduces the expectations of the market regarding increased in the basic rate of interest, since it helps containing the inflation. “All of the countries are with problem of inflation. We are not alone. But we have already adopted some measures for pursue the center of the goal of 4,5%, and this [the cut] is one more. We are not standstill, looking inflation advance”, said Mantega.