Bolsonaro Announces Greater Budget Cuts in Brazil

Brazil's president, Jair Bolsonaro, announced on Wednesday a cut to the federal budget of 82.5 million dollars, representing the largest reduction in recent years in the country.

The new economic policy mainly affects education and social welfare programs, whose resources will be blocked by an unofficial decree of the Executive.

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Between 2016-2019 Brazil has experienced a reduction in its gross domestic product (GDP) of seven percentage points, generating a figure of 13 million unemployed.

Last week, Bolsonaro announced that the Ministry of Education would have a reduction of a fifth of its budget, mainly affecting university scholars.

For his part, the minister of that portfolio, Paulo Guedes, said that the slow growth of the economy and the collection of taxes are not enough to meet the social programs that are needed, therefore, it is "necessary" to reduce public expenses.

Also, Bolsonario explained that during the week the ministries will know the exact figure of the budget decrease for this year. 

Brazilian economic growth is growing slowly at 1.1 percent in 2017 and 2018, so the new projection for 2019 is 0.81 percent.