THE BUDGET FOR THE YEAR 2000Most analysts believe that the budget for the year 2000
presented by the government is feasible, but many points used to design
the budget depend on negotiations with Congress. "If first impressions
are confirmed, the budget corresponds to reality", says former Central
Bank President Affonso Celso Pastore. According to the Chief Economist
for Citibank, the budget is feasible but not easy to accomplish.Specialists
say that the government would have to reduce monthly expenses
immediately until the end of the year from R$ 3.5 billion to R$ 2.87
billion, which would correspond to a 20% reduction. "It's quite a tight
budget", said former Minister Maílson da Nóbrega. The main problem is
that state employees' salaries have been raised and an extra R$ 3.1
billion will have to be paid next year.Analysts predict
a) a necessary cut in the public expenditure
b) a further increase in state employees' salaries
c) a considerable surplus for the public sector
d) a substantial change in the fiscal responsibility law
e) a huge technological investment