BRASILIA - Brazil Finance Minister Fernando Haddad said on Monday that leftist President Luiz Inacio Lula da Silva's government will not accept the "absurd" 220 billion-real ($41.19 billion) primary deficit forecast in this year's budget, indicating it will work to make it smaller.

"In addition to working with full emphasis on the recovery of public accounts, it is necessary to combat inflation," said Haddad in his first speech in office, adding he will send to Congress the proposal for a new fiscal anchor that will ensure public debt sustainability in the first half of the year. ($1 = 5.3416 reais)

(Reporting by Marcela Ayres in Brasilia Editing by Matthew Lewis)