Brazil's Fin Min announces $7 billion in spending cuts aimed to bring 2016 budget into black

Brazil's Finance Minister has announced nearly $7 billion in spending cuts aimed at covering an $8 billion shortfall to the 2016 budget.

Joaquim Levy says the cuts are to include large-scale infrastructure projects initially aimed at stimulating the South American giant's now-stalling economy. Other savings will come from personnel cuts within Cabinet ministry staff, as well as other cuts to Brazil's bloated public sector.

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Levy made the hotly anticipated announcement late Monday, days after revealing the projected $8 billion shortfall to next year's budget.

Brazil's economy is in recession, and the economic woes have contributed to President Dilma Rousseff's plummeting popularity ratings, which have dipped to single-digits.

Monday's announcement was seen as a test of Rousseff's willingness to make the hard and unpopular cuts Levy insists are necessary.