Good morning! Today, the revenue battle over the 2024 budget, which will be unveiled today. São Paulo retailers growing more confident in the economy. And Lula’s G20 agenda.
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Congress, government, and cities in battle for revenue
Ahead of the government’s much-anticipated 2024 budget proposal to be unveiled to Congress later today, Planning Minister Simone Tebet said tax revenues must increase by BRL 168 billion (USD 34.3 billion) to meet the target of zero primary deficit.
- Spending, meanwhile, will increase by BRL 129 billion — much of which will be used to pay for constitutional increases to the health and education budgets, Ms. Tebet said.
State of play. The fiscal scenario may be daunting. The Treasury reported a primary deficit of BRL 78.2 billion in the first seven months of the year — the worst since 2020, when the pandemic shock forced the government to disburse tons of money in federal aid to citizens and local governments.
- Additionally, one important source of revenue has become more austere, as dividends from state-controlled companies...