Brazilian president seeks public spending cap approval from Congress

Brazilian President Michel Temer announced Saturday that a major priority for his government is win congressional approval for a public spending cap in order to fix "unbalanced public accounts."

According to local media reports, in a statement issued Saturday, Temer said Congress must quickly approve the public spending cap he has proposed.

Speaking in Hangzhou, China, where he is attending the G20 Summit, Temer lambasted the previous government of Dilma Rousseff for its "audacity" in massively raising public spending.

Temer said that once the spending cap is approved, a new limit will be established for the growth in expenditure included in the federal budget, based on the inflation rate of the previous year.

In his statement, he also said he would prioritize studies and debates ahead of a landmark pension reform.

He said the government will also rapidly send the final version of this reform to Congress, as "it is of great public interest and urgent for the sustainability of the pensions system."

"If the reform of the pensions system is not done now, in 10 to 15 years, those wishing to retire...will not be able to be paid," said Temer.

Given the controversial nature of this move, Temer pledged a broad dialogue on the need for this reform with all sectors concerned. Endi