Despite improvement, Brazil far from going back to black

Brazil has approved the first federal budget under Jair Bolsonaro, predicting the smallest deficit since 2016. Things are improving, but there is much to be done before public accounts returning to the black
Photo: Eames Bot/Shutterstock

Brazil’s Congress approved the federal budget for 2020, the first proposed by the Jair Bolsonaro administration. The forecast indicates gradual improvement to Brazil’s public accounts, with a fiscal target of a BRL 124.1 billion deficit being the lowest since 2016. However, it still means the Brazilian government will remain in the red for the sixth year running, so perhaps there is less of a reason to celebrate.

Revenue was pegged at BRL 3.687 trillion, including BRL 7 billion in dividends from state-owned companies and the optimistic expectation of a GDP growth of 2.32 percent—above market expectations of...

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