BRASILIA (Reuters) - Brazil's government will increase this year's planned spending freeze by around 5 billion reais ($1.6 billion) as part of efforts to cover a budget shortfall, two sources with knowledge of the decision told Reuters on Thursday.


Brazil froze 39 billion reais in spending earlier this year, disrupting services such as issuing passports, to reinforce its commitment to fiscal discipline after years of broken budgets cost the country its investment-grade credit rating. President Michel Temer's administration is also due to announce higher fuel taxes, a government source said earlier.


($1 = 3.13 reais)


(Reporting by Marcela Ayres and Patricia Duarte; Writing by Silvio Cascione; Editing by Frances Kerry)