UPDATE 4-Brazil pledges spending cuts after record budget gap

jueves 31 de octubre de 2013 23:06 CET

* Brazil posts record primary deficit of 9 billion reais in Sept

* Government says to lower some unemployment benefit costs

* Move unlikely to allow government to reach fiscal target

* Net debt/GDP ratio rises to 35.0 pct

By Luciana Otoni and Nestor Rabello

BRASILIA, Oct 31 (Reuters) - The Brazilian government announced on Thursday plans to cut some unemployment benefit costs, a move analysts said was not enough to calm investors worried that a rapid deterioration of the country's finances could lead to a credit rating downgrade.

The country posted a primary budget deficit of 9.048 billion reais ($4.1 billion) in September, its biggest in nearly five years, central bank data showed earlier on Thursday.

Analysts had expected a small surplus of 100 million reais for the month.

Hours after the data was released, Finance Minister Guido Mantega called a press briefing to announce the government was analyzing cuts to expenditures related to unemployment insurance and mandatory wage bonuses.   Continuación...