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Brazil forecast to face billions of U.S. dollars in fiscal deficit

Xinhua, October 30, 2015 Adjust font size:

The Brazilian government has forecasted a fiscal deficit of up to 117.9 billion reals (30.6 billion U.S. dollars) this year, local news website G1 said on Thursday.

The G1 website said the government mentioned in detail the possibility of a major deficit in a document sent to the Congress this week.

The huge deficit is attributed to not only a recession with no end in sight, but also problematic fiscal maneuvers by the government, it said.

The Brazilian government delayed payments to public banks, but the Accounts Court may order the payments be made no later than the end of the year, which can lead to a deficit of up to 55 billion reals (14.3 billion U.S. dollars).

In addition, an auction of hydroelectric power plants may be postponed to next year, which means a shortfall of 11.1 billion reals (2.9 billion dollars).

Although the amount of 117.9 billion reals is only equivalent to 2.05 percent of Brazil's GDP, this may be a heavy blow to the current government and even trigger possible impeachment processes for President Dilma Rousseff. Endi