Brazil Freezes $3.33 Billion In Spending To Meet Fiscal Rules

Brazil's government tightened spending controls, freezing 19.3 billion reais ($3.33 billion) in expenditures to comply with fiscal rules for the year, Marcela Ayres reported for Reuters.

The amount surpasses the 13.3 billion reais reported in September, according to the bi-monthly revenue and expenditure report from the Planning and Finance Ministries. I Photo: Washington Costa Flickr

The amount surpasses the 13.3 billion reais reported in September, according to the bi-monthly revenue and expenditure report from the Planning and Finance Ministries. The government also adjusted its 2024 primary deficit forecast to 28.7 billion reais, slightly higher than the previously projected 28.3 billion reais.

Despite the revision, the forecast remains within the fiscal target of a zero deficit for the year, which allows a tolerance margin of 0.25 percentage points of GDP—permitting a shortfall of up to 28.8 billion reais.

The increased spending freeze stems from projections of higher mandatory expenditures this year, which would otherwise breach the legally established spending cap.