Lower tax revenue in Brazil leads to budget freeze

The government will have to carry out a budget freeze of some $1.9 billion in the forecast for 2017 in a bid to adapt to the new 2017 revenue estimates.

According to an official report on revenues and expenses released today (Jul 21), the estimated tax revenue slid from $443.43 billion to $441.51 billion.

Planning Minister Dyogo Oliveira said the reduction in primary revenues stems from “the slower recovery of the economy and the non-fulfillment of a few revenue estimates,” among other factors.

Among the revenues that thwarted the government's expectations is the one linked to the repatriation of assets, which is likely to undergo a decline of approximately $3 billion.

Part of the negative balance was compensated for with higher taxes on fuels and the return of uncollected funds to public coffers.

Translated by Fabrício Ferreira