Thursday, February 05, 2009

Economy: Brazil pumps another $62 bn into recovery program

Brazil's President Luiz Inacio Lula da Silva has announced an additional $62 billion to bankroll the Growth Acceleration Program (PAC), bringing its total budget to $281 billion by 2010.

The PAC, which is the Lula administration's main social program, is intended to strengthen Brazil's infrastructure, and consequently to stimulate the private sector and create more jobs.

The social and urban infrastructure sector will receive $37 billion or 60 percent of the new increase; the logistics sector $16.1 billion, 26 percent of the increase; and the energy sector $8.7 billion, 14 percent of the hike.

In addition, from 2011, the program will receive a further injection of $218 billion dollars, making the entire budget top $499 billion.

The state-owned oil and gas giant Petrobras' investments in the country's pre-salt layer oil fields are included in the PAC budget.
Published by Mike Hitchen, Mike Hitchen Consulting
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