Good morning! Today, the government moves its own fiscal goalposts. Web Summit Rio kicks off. Brazil sees a hike in land invasions. And the country’s response to Iran attacks didn’t go down well.
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Government wants to lower its 2025 fiscal target
The ink on Brazil’s new fiscal framework is barely dry, and the government is already seeking to change the targets it set for itself.
What happened. The government disclosed details of its proposal for the 2025 Budgetary Directives Law (LDO), which sets the guidelines for next year’s budget. The bill lowers the projected primary result in 2025 to a zero-deficit target, down from the 0.5 percent GDP surplus forecast in the current budget.
Remembering the rule. Last year, the government got Congress to approve a new fiscal rule, according to which it would be allowed to increase spending every year under certain parameters. Spending would rise between 0.6 and 2.5 percent above inflation, based on how much revenue increases from one year to the next.
- If primary goals are...