Brazil President Luiz Inacio Lula da Silva wants to present a plan for income tax exemptions alongside public spending cuts, as investors grow increasingly worried over the nation’s fiscal policy.

Brazil’s inflation picked up much more than expected in early November, adding urgency to government plans to cut swelling public spending that is pushing cost-of-living increases above target.Most Read from BloombergNew York City’s ‘Living Breakwaters’ Brace for Stormier SeasIn Kansas City,

FILE PHOTO: Brazil's Finance Minister Fernando Haddad attends a meeting with Brazil's President Luiz Inacio Lula da Silva to discuss online bets, at the Planalto Palace in Brasilia, Brazil August 3, 2024. REUTERS/Adriano Machado/File Photo

Brazil Finance Minister Fernando Haddad unveiled a long-sought plan to cut 70 billion reais ($11.8 billion) from public spending through 2026 as investors’ fiscal concerns sink assets from the currency to stocks.