SAO PAULO, April 6 (Reuters) - The top executive of private-sector lender Banco Bradesco SA on Monday said the Brazilian government has the ability to tighten its budget, reversing years of economic policies that he said imposed a burden on public finances.
Congress must approve a package of measures to curb spending and reduce national debt to “give the country relief,” said Luiz Carlos Trabuco, Bradesco’s chief executive officer, at a bank event in São Paulo.
Finance Minister Joaquim Levy, who took office in January, is trying to push through a package of spending cuts and tax increases, reversing the looser fiscal policies of President Dilma Rousseff’s first term. Economists have forecast that Levy’s plan will probably push the economy into recession before eventually subduing inflation, balancing public finances and restoring confidence.
Trabuco said the government’s target for the primary budget surplus, or excess revenue over expenses before debt servicing, equal to 1.2 percent of gross domestic product is feasible.
The country does not yet have conditions of growing outstanding credit at a fast pace, Trabuco said. (Reporting by Aluísio Alves; Editing by Guillermo Parra-Bernal and David Gregorio)