| BRASILIA, March 27
BRASILIA, March 27 The Brazilian government is
considering 14 billion reais ($4.6 billion) in tax increases and
a spending freeze of 30 billion reais for this year to meet its
key fiscal savings goal, a government source said on Monday.
The government also plans to raise another 14 billions reais
in asset sales to cover a gap of 58 billion reais in this year's
primary budget deficit target, a key gauge of the country's
capacity to repay its debt. The government has a primary deficit
goal of 139 billion reais in 2017.
President Michel Temer still has to decide on the proposal
after meeting with Finance Minister Henrique Meirelles later on
Monday. The official announcement is expected for Tuesday, said
the official who asked for anonymity because the matter is not
The source said the government could increase the Pis/Cofins
social security levies charged on almost all goods and services
sold in Brazil. The government could also eliminate a series of
payroll tax breaks and hike the IOF financial transactions tax.
Temer and his allies in Congress have opposed tax increases
out of fear that higher duties could hurt an economy still
reeling from the country's worst recession in a century.
(Reporting by Patricia Duarte; Writing by Alonso Soto; Editing
by Chizu Nomiyama)