Brazil spending cap forces Temer government to rethink expenses

Brazil's President Michel Temer gestures during a ceremony at the Planalto Palace in Brasilia, Brazil, March 7, 2017. REUTERS/Adriano Machado

BRASILIA (Reuters) - Constrained by a spending cap enacted by his own administration, President Michel Temer's government is brainstorming to cut costs and squeeze more from a leaner federal budget.

Tens of thousands of civil servants will have to take regular taxis to get around Brasilia, the capital, because fleets of chauffeur-driven government cars will be eliminated. A centralized contract for power at government buildings will reduce the electricity bill by 20 percent.