HomeDebt MarketBrazil's Flavio Bolsonaro pledges fiscal adjustment, rejects cuts to social spending

Brazil’s Flavio Bolsonaro pledges fiscal adjustment, rejects cuts to social spending

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SAO PAULO, Oct ‌16 (Reuters) - Brazilian Senator Flavio Bolsonaro said on Friday ​that, if elected president, he would seek to curb Brazil's rising public ⁠debt without touching politically sensitive social spending commitments, rejecting media reports that his campaign was considering such measures.

The right-wing lawmaker, ​the eldest son of former President Jair Bolsonaro, will face leftist President ‌Luiz Inacio Lula da Silva in a runoff on October 25 and currently leads polls against the incumbent.

• In an interview ⁠with TV Globo's Jornal Nacional, the most-watched newscast ⁠in Brazil, Bolsonaro pledged to deliver a 200 billion real ($39.49 billion) fiscal adjustment in the federal budget if elected

• Bolsonaro dismissed proposals attributed by media reports to his campaign to ‌halt real minimum wage increases, eliminate automatic adjustments for social benefits ⁠or reduce mandatory social expenditures

• "There has been ‌a lot of fake news circulating, ​and this is an important moment to set the record straight," the senator said

• Instead, Bolsonaro said the adjustment would ‌come from eliminating ministries, tackling mismanagement at ​state-controlled firms and monetizing ⁠federal real estate assets

• Brazil's gross debt has risen ‌more than 10 percentage points ⁠during Lula's term to 82.9% of GDP, while long-term interest rates have fallen since Bolsonaro's first-round victory

• The senator also said ​he would not ‌seek to reverse a constitutional amendment approved on Wednesday to shorten ⁠the working week in Brazil ​from six to five days($1 = 5.0648 reais)

(Reporting by Fernando ​Cardoso; Editing by Andre Romani)

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