RIO DE JANEIRO, Feb. 9 (Xinhua) -- The Brazilian government said Wednesday it will cut federal budget by about 30 billion U.S. dollars this year, more than twice of that of 2010 and equivalent to 1.2 percent of the country's GDP.

Through such cuts, the government is withdrawing the stimuli granted in the past few years to counter global financial crisis,Finance Minister Guido Mantega told reporters, while promising that both government investment and social programs won't be affected.

"Today, (Brazil's) economy is growing and the demand is strong. We are withdrawing those stimuli," he said.

Mantega said the cuts will help the government achieve the primary surplus target set for this year, as well as allow the central bank, when it is possible, to cut the annual basic interest rate of Selic, which is currently at 11.25 percent.

The cuts won't bring the economy down, but instead will make economic growth more sustainable, he said.

The minister expected the economy to grow by 5 percent in 2011, which is 2.5 percent less than that of last year but is still "good" for the South America's largest economy.