Brazilian President Dilma Rousseff reduced the size of her Cabinet on Friday and announced spending cuts to shore up support for her government's efforts to introduce fiscal reforms. The changes also appear to be aimed at countering efforts to impeach her.

While the Cabinet was slimmed to 31 members from 39, Rousseff made no changes to the economic team headed by Finance Minister Joaquim Levy, which is battling a recession.

She said Defense Minister Jacques Wagner will become her chief of staff. He's believed to have better relations with lawmakers than outgoing Aloizio Mercadante, who was shifted to education minister.

Wagner is a former governor the northeastern state of Bahia and a close ally of Rousseff's predecessor and mentor former President Luiz Inacio Lula da Silva.

"It is almost certain this will stop any impeachment process in the short run, but we have to check how well those reforms will be implemented," said Luciano Dias, an analyst at the Brasilia-based Institute of Political Studies.

In addition to consolidating ministries, Rousseff announced a 10 percent cut in ministers' salaries, a 20 percent cut in ministry expenses, the elimination of 3,000 positions and spending limits on telephone calls and travel.

The government has estimated that the measures will save about $50 million, a tiny sliver of the budget Rousseff submitted a budget to Congress in August with a built-in deficit of about $10 billion.

By giving the Democratic Movement Party, known as the PMDB, a seventh cabinet post, Rousseff was seeking to ensure the party's support for the fiscal reforms and block the efforts of some congressmen to initiate impeachment proceedings.

The PMDB is Brazil's largest party and it controls both houses of Congress. It has been the glue that's held together the ruling coalition led by Rousseff's Workers' Party since 2003.

Rousseff appointed PMDB congressman Marcelo Castro to head the health ministry, which has the highest budget in the federal administration. He replaced Arthur Chioro of the Worker's Party.

"Rousseff is desperate to stop an impeachment process. That is why she appointed PMDB members," said David Fleischer, a professor emeritus of political science at the University of Brasilia. (k)

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Mauricio Savarese in Rio de Janeiro Paulo contributed to this report.

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