The Ministries of Planning and Finance predicted this Friday that the central government will close 2024 with a primary deficit of 9.3 billion reais, equal to 0.1% of gross domestic product (GDP), within the established tolerance margin from the tax framework.
The estimate presented in the bimonthly revenue and expenditure report is worse than the result expected in the Budget, of a surplus of 3.5 billion reais. The fiscal target set for the year is a zero deficit, with a tolerance band of 0.25% of GDP, or about 29 billion reais.
Despite the shortfall against the target, the department’s calculations indicate that the year’s accounts will have to exceed the spending limit of 2.9 billion reais. To offset the excess, the government will have to block an equivalent amount in discretionary funds, which could impact investment.
Source: Terra
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