Planning minister promises to limit PAC cuts

- Monday, January 17, 2011

Planning minister promises to limit PAC cuts

Brazil's planning minister, Miriam Belchior, has promised to limit proposed budget cuts for the second phase of the PAC growth acceleration plan, news service Agencia Estado reported.

Finance minister Guido Mantega and President Dilma Rousseff said in December that some projects under phase II of the plan would be cut or suspended to help pay debts from the previous year.

However, the cuts will not affect ongoing projects, according to the report.

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Belchior plans to meet with Mantega in the next few weeks to discuss which areas will receive reduced funds, and a presidential decree stipulating the new budgets will be published in February. Until then, ministries may carry out around 5.55% of their planned spending.

PAC II was initially expected to involve 959bn reais (US$571mn) in total. An additional 632bn-real investment is planned after 2014.