Brazil's FM Mantega speaks during a news conference in Brasilia
Brazil's Finance Minister Guido Mantega speaks during a news conference in Brasilia June 9, 2009. Brazil's economy has shown a quick turnaround as resilient domestic demand and vigorous government spending helped ease a steeper decline in activity, Mantega said. Reuters

The Brazilian government plans to cut the federal budget by about $30 billion in 2011, which is more than double the budgetary cut last year, said a media report on Thursday.

By slashing the budget, the government wants to withdraw the stimuli induced into the economy in the past few years to counter the global financial crisis, said a Xinhua report quoting Guido Mantega, Brazilian finance minister.

Today, (Brazil's) economy is growing and the demand is strong. We are withdrawing those stimuli, Mantega said.

The finance minister promised that the budgetary cut, which accounted for 1.2 percent of the country’s GDP, will not affect the government's investment and social programs.

The cuts won't bring the economy down, but instead will make economic growth more sustainable, he said. He also expected the economy to grow by 5 percent this year.

Boosted by a strong domestic demand, Brazil’s economy is estimated to record a growth of 7.7 percent, the highest in 25 years, according to an analysis from Latin Business Chronicle.

The unemployment rate in Latin America’s biggest economy fell to a record low of 6.7 percent last year, down from 8.1 percent in 2009, according to the Brazilian Institute of Geography and Statistics (IBGE).

2010 also saw the highest increase in monthly incomes of Brazilians at 1490.61 Brazilian real ($893.4), up 19 percent compared with levels in 2003. Per capita income was up 5.5 percent in 2010 compared with 2009.

However, inflation continues to be a concern for the economy.