Brazil raises revenues forecast with amnesty program proceeds

BRASILIA: The Brazilian government increased its revenues estimate for 2016 by 26.9 billion reais ($8 billion) after receiving hefty proceeds from an asset amnesty program, the planning ministry said on Tuesday.

Planning Minister Dyogo Oliveira told reporters he recommends the government use 16.2 billion reais of the proceeds to pay down accrued obligations that total about 180 billion reais.

He said the government has not yet decided if it will share 5 billion reais in fines with cash-strapped states whose governors will meet later with President Michel Temer to demand help to pay their bills and honor their debts.

The spread of anti-austerity demonstrations in Rio de Janeiro and Rio Grande do Sul has worried Temer, who is pushing for measures to limit public spending and reduce hefty social security benefits.

Oliveira has said the country will be able to meet its public sector primary budget deficit target of 170.5 billion reais for 2016.