Brazil's president knocks election rival's industrial plan

Brazilian President Dilma Rousseff Tuesday knocked her main election rival's industrial program.

Following Monday's televised debate between candidates, Rousseff, who is running for reelection as the candidate of the Workers' Party (PT), said Brazilian Socialist Party (PSB) candidate Marina Silva's proposals would "reduce to dust" the nation's industrial policy.

A PSB win would "harm" both industry and agriculture, Rousseff concluded after the debate held at a union headquarters in the municipality of Sao Bernardo do Campo, in the southeastern state of Sao Paulo.

"I was left very concerned by candidate Marina's program. It takes the power away from state-run banks to participate in the financing of industry and agriculture," said Rousseff.

Brazil's National Economic and Social Development Bank (BNDES) provides long-term, low-interest loans to specific economic sectors with a goal to generate employment.

Last week, Silva unveiled her government program, which basically seeks to reduce state involvement in the economy and establish an independent central bank.

Rousseff's Finance Minister Guido Mantega Tuesday echoed the president's criticism of the proposed program, saying it could "paralyze" the economy.

"It has elements that could reduce economic activity. Reducing the role of public banks leads to less financing and higher interest rates," he said.

According to Mantega, boosting the participation of private banks in the economy does not have to imply a lesser role for public banks.

With just over a month to go before the Oct. 5 general elections, Rousseff and Silva are neck-and-neck in the polls, with 34 percent voter support each, increasing the chances of a runoff.

Conservative Social Democratic Party (PSDB) candidate Aecio Neves trails with 17 percent.