Brazil’s Lula to Decide on Fiscal Measures After Foreign Trips, Finance Minister Says
The proposal would turn temporary freezes into lasting cuts and could help the government meet its 2027 fiscal target, officials said.
- President Luiz Inacio Lula da Silva is weighing new fiscal measures to address mounting public debt following his October 25 re-election, as investor concerns mount over spending control.
- Finance Minister Dario Durigan's team proposed converting temporary spending freezes into permanent federal budget cuts to strengthen Brazil's fiscal framework, which ties spending growth to inflation plus 0.6% to 2.5% annually.
- Brazil's gross debt reached 82.9% of GDP under Lula's current term, while the central bank held the benchmark Selic rate at 13.75%, one of the highest among major emerging economies.
- Investors demand higher risk premiums on government debt, awaiting clear fiscal discipline signals to avoid repeating the 2024 spending-control package that disappointed markets.
- President Lula will review the proposals after returning from trips to Turkey and the Philippines, scheduled to remain until November 15, with an announcement expected by late November.
68 Articles
68 Articles
In his first speech on television since re-election, he also released an indirect to defeated candidate Flávio Bolsonaro (PL), who left for the United States two days after the second round. "I never left my country," said the petist.
Brazilian President Luiz Inácio Lula da Silva said that before going to the polls, the Brazilian population took to the streets and used social networks to defend rights, causes and hopes.
The result of the presidential election is a paradox that no speech of victory explains. The government that presents itself as that of the poor funds itself to pay interest to the rich.
Lula Consults Mantega, Leftist Economists on Plans for New Term
A populist varnish of measures – in the positive sense of the term – shines the 583-page brick of the Minister of Finance.
Coverage Details
Bias Distribution
- 42% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
