Brazilian President Raises
Pension Despite Rejections
RIO DE JANEIRO - Brazil's President Luiz
Inacio Lula da Silva decided on Tuesday to
grant a 7.7 percent rise to the retirement
benefits and pensions, to take effect in
August.
Lula decided to ok the bill despite his
economic team's advice to veto it, due to
the impact it would have on the public
accounts.
"I will do what I think is good for Brazil,
and for the retired," he said, adding that
he would not "leave skeletons" for the next
administration.
According to Finance Minister Guido Mantega,
who announced the decision, the measure will
have an impact of 1.6 billion reais (893
million U.S. dollars) in Brazil's public
accounts this year. In order to maintain the
public accounts' balance, the president
authorized several budget cuts.
"Lula allowed us to make the necessary cuts,
which will compensate the 7.7 percent," he
said.
The Finance Minister, who defended the veto,
did not consider the granting of the raise a
defeat of the economic team.
"To me, the most important thing is to
fulfill the fiscal target, maintain the
fiscal balance even in an electoral year,"
he said.
|
|
|
|
|
|
|
|
