Brazilian FM says growth rate can top 5 percent

11:14, May 05, 2010      

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Brazilian Finance Minister Guido Mantega said on Tuesday that the country can achieve a growth rate of more than 5 percent while keeping public expenses and the inflation rate under control.

Mantega, who attended earlier in the day a seminar on the 10th anniversary of the country's Fiscal Responsibility Law, said Brazil's fiscal situation, though not ideal, is better than many countries in a post-crisis scenario.

Mantega reaffirmed the government's commitment to achieve a primary surplus of 3.3 percent of the GDP and added that soon Brazil will register a nominal surplus.

He also said the best way to maintain a good fiscal balance is to stimulate economic growth, which leads to a higher tax collection.

"This way you collect more without burdening the society, without raising taxes," the Finance Minister said.

Mantega believes that cutting government costs is not necessarily a good thing. "Cutting certain costs is bad, because you end up decreasing investment and economic activity," he said.

Mantega also said Brazil will keep working to reduce its public debt and will register one of the best nominal figures among the G20 countries.



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