The targeting system will transition to a continuous regime with a longer-term perspective in 2025, said Finance Minister Fernando Haddad and Planning Minister Simone Tebet.
New fiscal rules should limit the rise in Brazil’s public spending to 70% of the growth in revenue seen in the 12 months prior, the Finance Ministry announced. The new system combines more flexible restraints with the country’s targeted primary balance.
For Fernando Haddad, the government is committed to rebalancing public accounts, and this would be a reason for the Central Bank to start easing monetary policy.
Finance Minister Fernando Haddad spoke after meeting with President Lula. The government hopes the change can help stabilize public debt with minimal harm to investment, as the current ceiling limits the growth of expenses to the inflation observed in the previous year.
For the Ministry of Finance Fernando Haddad, the expectation towards Brazil is high, given its return to the international scene and the country's leadership in the next major summits.
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