Brazil is seeking to reduce a budget deficitthat led to a drop in the country's credit rating last week.On Monday, the government announced spending cuts and tax increasestotaling almost $17 billion.The government said it plans to bring back the CPMF,a tax on financial transactions.The government hopes to raise more than $8 billion next yearif Congress accepts the tax.However, many lawmakers oppose the measure.Other proposed cuts would reduce government aid for farmers,infrastructure improvements and pay for government employees.Public health and low-cost housing programs could also face cuts.The government reduced tax subsidies for the chemical industry.It also reduced aid for exporters of manufactured goodsand raised taxes on capital gains, profits from sales of investments.The most recent measures are meant to cut a deficit in the budget next year.Brazil's economy has shrunk for the past six months.That means its economy is in recession.At the same time, President Dilma Rousseffhas experienced a drop in popularity.Opposition members in Congressdismissed the cost-cutting measures as too little.Some are calling for the president to resign.The Reuters news service reports that economists have saidthe expected savings look promising.However, it remains unclearif the measures will clear Congress without amendments.The speaker of Brazil's lower house of Congress, Eduardo Cunha, saidthe president's administration lacked the support needed in Congressto approve the proposed return of the CPMF tax.The head of the Brazilian Senate, Renan Calheiros,said deeper cuts were needed to reduce the size of the federal governmentbefore Congress will agree to more taxes.Government officials also say 10 ministries will be closed to save money.The proposed reduction in public health and housing spendingwill be difficult for supporters of President Rousseff.Her Workers' Party has resisted cuts to social programs.Predictions of a big budget deficit in 2016caused Brazil to lose its high credit rating last week.The rating agency Standard & Poor's no longer considers the country's credit rating as investment grade.The downgrade means some foreign investment fundsand other large investors may be forced to sell Brazilian government bonds.However, the value of Brazilian money, the real,increased on news of the cost cutting measures to reduce the deficit.