BRASILIA, July 22 (Reuters) - Brazil slashed its key fiscal target for this year, the Planning Ministry said on Wednesday, underscoring the growing challenge authorities face to shore up the country's finances after years of excesses.
President Dilma Rousseff decided to lower the primary surplus target to 8.747 billion reais from the original target of 66.3 billion reais, according to a statement on the ministry's website. Reuters reported earlier on Wednesday the reduction in the fiscal target.
The government also announced an additional cut in spending of 8.6 billion reais this year.
Finance Minister Joaquim Levy said the government was not abandoning fiscal discipline. The decision to reduce the target was caused by a recent drop in tax revenues, he said at a press conference. (Reporting by Alonso Soto and Luciana Otoni; Editing by Leslie Adler)