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Lula unveils ambitious investment plan to achieve 5% growth rate

Brazilian president, Luiz Inacio Lula da Silva, has announced an ambitious investment program that involves $240 billion for his second term in the office. The core target of the plan is to develop and restructure the infrastructure of the country. The president has given a call to private companies to participate in the plan to upgrade roads and railways and to develop energy provision of the country. However, the experts have said that the plan has failed to address the deeper structural problems of the country’s economy. Lula was re-elected to the office for the second time in last October, when he had boasted that he had reduced poverty and inequalities in Brazil. Despite being a leading nation among fast developing countries, for the past two years country’s economic growth has been unsatisfactory as the growth rate averaged less than 3 percent. However, the recent plan proposed by the president for the country’s growth aims at bringing the rate of growth at 5 percent by next year. In the present circumstances it seems almost impossible that Brazil can achieve all the target of the plan. According to the plan, 13 percent of the $240 billion will be coming from central government’s exchequer and for the rest of the amount is likely to be pumped up by state-controlled companies and private companies, which will be given tax breaks to participate in the plan. However, the plan has received criticism on the ground that the persistent need of a major refurbishment of the tax structure of the country has been kept untouched in the plan. Lula at present seemingly prefers to not to touch the detailed proposals to reform a hugely indebted pensions system. The investment program is however subject to approval by congress and backed by state governors.


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