World Economy

Brazil’s Temer Faces New Challenges

Brazil’s Temer Faces New ChallengesBrazil’s Temer Faces New Challenges

Brazil’s fiscal accounts were in worse shape than initially thought after the suspension of Dilma Rousseff, underscoring the challenge facing the country’s new economic team, acting President Michel Temer said, Bloomberg reported. “It was surprising, in a negative way, what we encountered,” Temer told the Folha de S. Paulo newspaper in an interview published Saturday on its website. “The fiscal accounts were worse than we imagined, Petrobras was broken, the Postal Office broken, Eletrobras broken, and I still have faced an aggressive campaign against me.” The forecast for this year’s budget gap, revised by Finance Minister Henrique Meirelles to a record 170 billion reais ($49.7 billion), forced Temer’s team to propose a cap on the increase in spending for next year to control Brazil’s growing debt. The spending bill is expected to be presented at Congress next week. The size of the deficit was the worst surprise Temer found when he took over, he told Folha. Bottom of Form