Lula of Brazil claims that the government is dedicated to budgetary restraint

On Wednesday, the president of Brazil, Luiz Inacio Lula da Silva, declared that his administration is committed to upholding budgetary restraint, even if he gave the assurance that the government would continue its cash transference programs.

Brazilian assets have been sold off in recent weeks as investors have become concerned about a potential fiscal downturn due to the government’s unwillingness to reduce spending. This has cast doubt on the government’s ability to meet its target of closing the primary deficit this year.