Brazil Treasury Secretary outlines need to slash public spending despite pension reform

Brazil will still need to slash public spending, particularly government salaries, even if Congress approves a strong pension reform bill delivering a high level of savings, Treasury Secretary Mansueto Almeida said on Wednesday.

Speaking at a conference in New York, Almeida said that pension reform is a difficult process but support in Congress is strong and the government is "learning" to negotiate with lawmakers. Almeida also said the minimum wage must be capped but defended a controversial pay rise for army generals as "fair".