BRASILIA, March 29 The Brazilian government on
Wednesday announced a larger-than-expected spending freeze while
opting for smaller tax breaks to meet its fiscal deficit goal.
Finance Minister Henrique Meirelles said the government
will freeze 42 billion reais ($13.45 billion) in spending as tax
revenues continue to disappoint as the economy slowly emerges
from its worst recession in a century.
He said the freeze was larger because the government decided
to temporarily drop plans to correct the calculation of debts
owed by the federal government.
($1 = 3.1225 reais)
(Reporting by Alonso Soto; Editing by Leslie Adler)