SAO PAULO, July 30 (Reuters) - Brazil’s President Dilma Rousseff vetoed a measure to raise pension expenditure in coming years as she struggled to shore up government finances, the country’s official gazette reported on Thursday.
The veto had been expected since Congress passed an amendment to readjust pension payments annually with the same formula used to raise the minimum wage.
Rousseff, whose approval rating has dropped to 7.7 percent according to one poll, is struggling to run an austerity program and avoid a credit-rating downgrade without losing any more support from her leftist support base in Congress that does not want to see social programs sacrificed.
Her government has said extending the minimum wage scheme to pensions would cost state coffers an extra 2 billion reais ($606 million) for every one percentage point increase in pensions.
$1 = 3.3 reais Reporting by Caroline Stauffer; Editing by Bernadette Baum