Weekly Report - 10 January 2008 (ISSN 1741-7422)

BRAZIL | Revenue shortfall and budget cut. The government's plan to make up for the loss of R$40bn (US$22bn) in revenues from the provisional tax on financial transactions (CPMF) is facing serious resistance. The opposition is furious with President Lula da Silva, who promised he would not raise any tax to compensate for the loss of revenue after the senate refused to extend the CPMF in early December. Lula made the pledge in order to win support for a bill increasing the executive's discretion over budget allocation, which was approved with the opposition's backing.

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