(Reuters) – Brazil’s government will unveil on Tuesday a fresh set of measures aimed at balancing its accounts, Finance Minister Fernando Haddad said, in its latest bid to ease fiscal concerns after a tax hike last month triggered backlash.
Investors have been eagerly awaiting the new package, which Haddad told reporters would consist of “structural, lasting measures,” as the government tries to hit its goal of eliminating its deficit this year before interest payments.
The minister did not immediately provide details on the new measures, but said that an official announcement should be expected later in the day after a meeting with President Luiz Inacio Lula da Silva.
“The flight plan is well established,” Haddad said, adding that a robust package had initial support from congressional leaders and would only need fine-tuning in the meeting with Lula. “You will know the decision in the coming hours, once he has approved the measures.”
Haddad had pledged new structural measures after an increase in the tax rate for some financial transactions sparked private-sector criticism and threats from lawmakers to overturn it.
Lula’s government has said it aims to rebalance the federal budget by eliminating tax distortions and what it sees as unjustified tax benefits, rather than cutting spending, which has risen since he took office.
However, several measures to curb tax incentives have been significantly watered down or ignored by Congress.
(Reporting by Gabriel Araujo; editing by Andrew Heavens, Brad Haynes and Mark Heinrich)
