Brazil's president defends government proposal to cut spending

Brazilian President Michel Temer on Monday defended his government's proposal to cut public expenditures.

The spending-cutting measures proposed by his administration, particularly a bill to put a cap on government expenses for 20 years, prompted criticism in the country.

The spending cap, inspired by policies of former British Prime Minister Margaret Thatcher, is necessary as the Brazilian economy is hitting rough patches, Temer said, quoting Thatcher as saying that "You can only spend what you collect."

The controversial bill was approved in the House of Representatives on Oct. 25. It will head to the Senate for voting in December.

Critics say that in the past decade, government spending on healthcare and education rose by much more than the inflation rate, as did the minimum wage, and that helped shrink Brazil's historic wealth gap.

Critics believe setting such a drastic limit may reverse the headway made in promoting equality. Endi