Candidates Get Similar Economic Advice : Brazil: Both the socialist and the centrist are urged to increase salaries of low-paid workers and expand services.

Economic advisers to both candidates in Brazil’s presidential runoff election propose salary increases for low-paid workers, expanded government social services, tougher tax-collection policies and reduction of foreign debt payments.

Candidate Luis Inacio da Silva, 44, says he is a socialist; his opponent, Fernando Collor de Mello, 40, calls himself a centrist. Yet despite that ideological gap, economists formulating plans for their would-be administrations are not always at odds. Interviews published Monday with two advisers to Da Silva and one to Collor highlight similarities as well as differences between the two camps competing to run Latin America’s largest economy.

Economist Aloisio Mercadante, a top adviser to Da Silva and a member of his Workers’ Party, said businessmen need not fear a government headed by Da Silva, known as Lula.

“Some businessmen, not all, fear our proposal for government because it advocates a redistribution of income that hurts the consolidated interests of large economic groups, of a privileged elite that dominates the politics and economics of Brazil,” Mercadante said.

“Nevertheless, our proposal is very clear: Those business sectors ready to invest their resources in production will have plenty of room in the government that Lula intends to carry out,” he said.

A government headed by Lula would attempt to stimulate production by raising salaries and consumer demand, he said, adding, “The priority will be to make industry produce more food, shoes, clothing--because if not, the salary increases will turn into inflation and lines.”

He said the minimum monthly salary, currently about $50, would rise to $200 over five years under Lula.

In addition, Lula would increase Brazilian imports and try to attract private foreign investment, Mercadante said.

“Another point is a new fiscal policy, whose first moment is fighting tax evasion,” he added.

Economist Paul Singer, another adviser to Lula, said wealthier Brazilians will have to bear the burden of increased government spending. “To invest more in public spending, we are going to charge higher taxes to the richer ones,” Singer said.

The Workers’ Party platform calls for nationalizing health care, public transportation, education and the banking system.

“One of my proposals is to nationalize the financial system--not only the banks, but the whole system,” Singer said. “If you have opposition from the private financial system, it destabilizes the entire economy.”

Singer also emphasized the Workers’ Party plan to suspend payments on Brazil’s $112-billion foreign debt while the country decides what part of the debt is “illegitimate.”

“Our forecast is that 40% of the debt is illegitimate, because it is from the period of 1979 to 1984, when the United States raised international interest rates,” he said.

Zelia Cardoso de Mello, Collor’s chief economic adviser, did not call for suspension of payments but said Collor’s policy will be to “decentralize” foreign debt negotiations so that each Brazilian state, municipality, private company and government-controlled enterprise that owes money abroad would seek agreement with its creditors on payment schedules.

De Mello said the policy would save the government $11.5 billion in debt payments over five years. She said that fiscal reform, including a crackdown on tax evasion, would increase government revenues from $35 billion in 1989 to $52 billion in 1994. And she said a “profound process of privatization” of government-run enterprises would bring in $31.5 billion.

Government investment would concentrate on social programs such as health care, education, transportation and housing, De Mello said. A Collor government would spend $18 billion on subsidized housing, she said.

She pledged that the minimum monthly salary would be increased to $369 over five years.

Both Lula’s and Collor’s advisers say that efforts to control inflation, now racing at nearly 40% a month, will be their top priority. But both Singer and De Mello emphasized their opposition to freezing prices and wages. They agreed that prices and wages should be controlled by negotiated agreements among government, the private sector and labor representatives.

The presidential runoff vote is scheduled for Dec. 17, and the new president will take office March 15. After the first round of elections Wednesday, Collor took a wide lead in early vote tabulations, but Lula’s second-place finish was not confirmed until Sunday.

With 99.3% of the votes officially tabulated Monday, Collor had 28.4%, Lula 16.1%, left-leaning populist Leonel Brizola 15.5%, Social Democrat Mario Covas 10.8% and conservative Paulo Maluf 8.3%. Remaining votes were shared by 16 other candidates.