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Brazil’s Lula to Decide on Fiscal Measures After Foreign Trips, Finance Minister Says
Lula’s economic team wants a rule that would turn temporary freezes into permanent cuts, after investors sold Brazilian assets and debt costs rose.
- On Thursday, Finance Minister Dario Durigan discussed proposals to modify Brazil's fiscal framework, potentially turning temporary spending freezes into lasting reductions to the federal budget limit.
- Rapidly rising mandatory spending pushed Brazil's gross debt to 82.9% of gross domestic product under President Luiz Inacio Lula da Silva's current term, prompting investor concern.
- Finance Minister Durigan noted high interest rates are "very harmful to the economy," while Brazil's central bank held the Selic rate at 13.75%; the government froze R$13.65 billion earlier this year.
- Following his overseas trips to Turkey and the Philippines, President Lula is expected to decide on fiscal measures; "We will keep debating and bringing forward proposals," Durigan said.
- Economic officials aim to signal fiscal discipline soon so Congress can approve measures this year, as the government must deliver an effective surplus of at least R$8.5 billion for 2027.
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57 Articles
57 Articles
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Total News Sources57
Leaning Left2Leaning Right4Center4Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
Factuality
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