By Raymond Colitt BRASILIA, March 29 (Reuters) - Brazil's President Luiz Inacio Lula da Silva said on Thursday the poor would not pay for a growing social security deficit seen as a brake on economic growth in Latin America's largest economy. Many economists say Brazil needs to cut pension payments if it wants to catch up to leading emerging markets such as China and India. Economic growth has averaged around 3 percent in recent years. "Social security will be fixed without throwing the responsibility of the deficit in the lap of the poor," Lula said during a ceremony to swear in five Cabinet members. The former union leader also defended the right of farmers to a pension without paying for it. Their "free" pensions account for nearly two-thirds of the total deficit. "I don't recognize the (pension) deficit as such. It is in part a social policy," Lula said as he swore in former Labor Minister Luiz Marinho as social security minister. Like Lula, Marinho headed a metalworkers' union in Sao Paulo. "I chose Marinho for social security ... because there are people who have a profile to face adverse situations," Lula said. The president launched talks with employers and union leaders earlier this month to draft social security reform proposals. The government spends roughly 160 billion reais ($77.6 billion) annually, or around one-third of total expenditures, on social security, driving up interest rates and making credit and investment scarce. Last year's social security deficit reached roughly 42 billion reais ($20.4 billion) up from 37.6 billion reais in 2005. Miguel Jorge, a former bank executive, became industry and trade minister as part of a wider Cabinet shuffle, replacing Luiz Fernando Furlan. Lula also swore in the ministers of communication, labor, and transport. He has replaced 11 ministers in a reorganization designed to ensure support from his coalition in Congress. Lula is granting each of the 11 political parties in his governing coalition participation in the Cabinet according to their respective strength in Congress. He has yet to name the fisheries and land reform ministers.
