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Brazil’s Rousseff cuts 8 ministries, trims salaries
October 3, 2015, 4:39 am

The move appeared to express solidarity with less privileged sectors of the society that have seen social programs curtailed [Xinhua]

The move appeared to express solidarity with less privileged sectors of the society that have seen social programs curtailed [Xinhua]

Brazilian President Dilma Rousseff has announced a major cabinet reshuffle saying her government will eliminate eight ministries and reduce remaining ministers’ salaries by 10 per cent, among other cuts.

The move appeared to express solidarity with less privileged sectors of the society that have seen social programs curtailed as the government reacted to an economic slowdown by implementing unpopular austerity measures.

Following the announcements on Friday, the Brazilian real surged, ending a six-week losing streak.

Rousseff also dissolved or combined ministerial posts, bringing the total from 39 to 31.

Rousseff ceded greater control of her government by giving members of the Brazilian Democratic Movement Party (PMDB) authority over seven ministries.

The PMDB was threatening to abandon her ruling left-leaning coalition.

Rousseff’s Workers’ Party (PT) continued to hold the most number of cabinet posts, or nine, but the PMDB, the party of her vice president Michel Temer, picked up the portfolio of the new Ministry of Health out of a total of seven. The remainder were distributed among minority political groups.

At a ceremony at the presidential headquarters of Planalto, Rousseff acknowledged the changes were designed to secure congressional support for her administration, and bolster political stability to meet the challenges of the economic crisis.

“This reform aims to update the government’s political base. We are making a more balanced coalition. This is a legitimate measure by a coalition government. We need to build an atmosphere of congressional cohesion and dialogue,” said Rousseff.