Government budget changes and provides more inflation and less growth in 2009

The federal government decided to revise the figures the base budget of 2009 and reduced the forecast of growth for next year to 4%. The prospect's official consumer price index Wide (IPCA) was amended upward, and the government admits that inflation will flee to the center of the target for inflation, which is 4.5%. 

The review will be officially delivered to Congress this Thursday (20), but the chairman of the Budget, Mendes Ribeiro (PMDB-RS), the rapporteur of the Budget, Delcídio Amaral (PT-MS) and the rapporteur of revenue, Mr Jorge Khoury (DEM-BA) received on the evening of Tuesday (19) of the technicians of the Ministry of Planning the new numbers. 

According to the document handed to parliament, the government now foresees economic growth of 4% for next year. Earlier this year, was the prospect of an increase of 4.5% of Gross Domestic Product (GDP). 

The forecast for inflation was amended upwards. Previously, the government hoped that the IPCA stay in the center of the target for inflation, which is 4.5%, but the review has already admitted a larger number: 5.19%. 

The government also includes in its new parameters for the fall in international price of oil, which should affect the distribution of royalties to states and municipalities. Before, it was predicted average price last year of about $ 111.00 and now the government provides U.S. $ 76.37. 

The figures also show that the government admits that the average price of the dollar next year will be higher than expected. In the initial proposal, the price was fixed at $ 1.71 and now the review talks at $ 2.04. 

With the revisions, the expectation is a drop in tax revenues of $ 15 billion compared with the originally envisaged, thereby forcing the Congress to make cuts in the budget. 

Source: G1