Miss. professor suspected of killing two in possible love triangle tells police he's 'not going to jail'
It has also been hurt by the slump in President Dilma Rousseff's public approval rating, which is now just 8%.
The measures were announced at a news conference by Finance Minister Joaquim Levy and Planning Minister Nelson Barbosa.
They include reducing the number of government ministries from 39 to 29, as well as cutting 1,000 public-sector jobs and freezing the pay of remaining state employees.