BRASILIA: President Dilma Rousseff on Thursday rejected calls from some lawmakers in her Workers' Party for Finance Minister Joaquim Levy to quit, saying he would remain in the job.
The lawmakers disagree with Levy's push for government austerity, which they think will sink Brazil's economy further towards recession.
Rousseff said she has full trust in Levy, who is trying to push through the unpopular measures in order to reduce Brazil's fiscal deficit and ward off the loss of its prized investment-grade credit rating.
Rousseff told reporters she will announce an infrastructure upgrade program on June 9, a massive concessions plan aimed at attracting billions of dollars in private investment to boost Brazil's stagnant economy.
Data on Thursday showed economic activity in Brazil tumbled in the first quarter and unemployment climbed to a near four-year high.
The Senate on Wednesday night postponed until next Tuesday a vote on a bill that trims workers' benefits because it lacked the votes to pass. It faces fierce opposition from senators who said the government should not reduce the social safety net at a time when the country is sliding into economic recession.
Another bill rolling back payroll tax cuts for companies is facing changes in the lower Chamber of Deputies and will not be put to the vote until June 10.
"I want to see their approval so Brazil can turn this page, but this fiscal adjustment is fundamental," Rousseff told reporters. "We have to balance our government accounts to move forward."
Rousseff is awaiting approval of the fiscal measures before her government decides on the size of a major cut in discretionary spending for this year, which will be announced on Friday.
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