Lula: economic policy is not in dispute

Juliana Andrade

Reporter Agência Brasil

Brasília - In another interview for radio stations yesterday (the third in a series) president Luiz Inácio Lula da Silva declared that the government is not divided about economic policy. He said the present policy was correct and had good results.

The president also came out in favor of maintaining the primary surplus target at 4.25% of GDP. Lula added that there were not going to be changes in economic policy because of next year's elections.

He pointed out that the country is growing with low inflation, while both exports and imports have risen. He also said that his adminstration has been creating an average of 108,000 jobs per month, twelve times what the prior administration did.

Lula said the increase in employment was not only due to economic growth, but a sharp improvement in income distribution resulting from the government's policies of more credit, microcredit plans and the strengthening of family farming.

In conclusion Lula said the government intends to continue reducing taxes in 2006. He said lower taxes generate more tax revenue because there is less tax fraud.

Translation: Allen Bennett