Brazil's Congress approves revised budget goal

Brazil's Congress on Wednesday approved a new fiscal deficit goal proposed by the interim government of President Michel Temer.

In a session that lasted 17 hours till Wednesday morning, the Congress approved the primary fiscal deficit target of 170.5 billion reais (48.75 billion U.S. dollars), nearly double the earlier fiscal target of 96 billion reais (27.5 billion dollars) set under suspended President Dilma Rousseff.

It was the biggest-ever deficit goal of its kind. A key indicator for creditors, the primary deficit measures the difference between government spending and revenue, excluding interest payments on debt.

Temer told a press conference that the congressional approval of his package of fiscal proposals was a "great victory."

He said the vote was key to the interim government as, without congressional approval to raise the deficit limit, severe cuts would have had to be made to government investments and social programs.

The approval of the deficit goal averted budgetary stalemate that threatened a government shutdown in June.

The approval of the deficit goal averts a government shutdown in June.

The revision to the country's budget regulations comes amid official expectation that the Brazilian economy will contract by 3.8 percent in 2016, the same rate as in 2015. Endit