One of the actions taken by the Lula government has been to strengthen the fiscal surplus. This increase in fiscal surplus is in line with efforts to control growth and easing inflationary pressures on aggregate demand. And despite the failure to approve the tax extension earlier this year, which closed the so-called check tax and took roughly R $ 40,000 million (an estimated U.S. $ 25,000 million) of annual revenue sharing funds not lower levels of government, Brazil is making a record collection that allows a strong increase in the surplus. During the first half of the year, tax collection in Brazil rose by 10% on-year, reaching R $ 327,600 million (equivalent to U.S. $ 206,000 million). Until May, Brazil had accumulated a primary surplus of R $ 13,200 million (U.S.
$ 8,000 million), representing an increase of 42% over the same period in 2007. The agricultural plan, which they spoke in an article earlier this month, was another of the Lula government’s measures to contain rising inflation through the expansion of domestic food supply. Logically, this has no immediate plan for what is to be hoped that the same is translated into an increase in agricultural production in order to determine whether this could positive impact or not on the inflationary dynamics. Also through the actions of the Central Bank of Brazil has been fighting inflation. The COPOM has increased its benchmark rate at its last two meetings. For now, the market expects from the central bank raising the benchmark rate up to 12.75% (currently at 12.25%) at the meeting that is taking forward.