Brazil's President Luiz Inacio Lula da Silva said on Tuesday that giving money to the poor through welfare programs is a more efficient way to boost the economy than cutting taxes.

The money given to the poor will help boost commerce and consumption, which are necessary for the country's economy to resume growth.

"All the money given to a poor person goes to consumption, not to the banks, not to derivatives," he said.

The president also said some Brazilian businessmen were benefiting from tax cuts, but they did not lower the price of their products correspondingly.

Lula said since the beginning of the global financial crisis, his government has cut taxes for the automobile and construction sectors, as well as some household appliances, such as oven and refrigerators.

The government has so far unburdened the industrial sector with 100 billion reais (US$50 billion), he said, adding that income tax and the tax over financial operations have also been reduced.

(Xinhua News Agency June 24, 2009)