Brazil’s 2025 budget bill anticipates a primary surplus of 15 billion reais, an increase from 3.7 billion reais, due to revised revenue projections. This follows President Lula’s fiscal framework, aiming for a zero primary deficit this year. The bill faces delays, revealing ongoing governance challenges.
The Brazilian budget bill has recently been revised to forecast a primary surplus of 15 billion reais (approximately $2.66 billion) for the central government in 2025. This increase is notable, showing a significant rise from the previous government proposal of 3.7 billion reais. The revision was presented early on Thursday by Senator Angelo Coronel, who is set to have it voted on in a joint budget committee before advancing to the full congressional session.
The new budget predictions reflect an upward adjustment in revenue forecasts, which has led to the optimistic outlook for the primary balance. In 2023, President Luiz Inacio Lula da Silva implemented a new fiscal framework that sets a primary balance target while capping spending growth at 2.5% above inflation. For this fiscal year, the aim is to achieve a zero primary deficit, allowing for a potential deficit of 30.9 billion reais while complying with the set regulations.
Senator Coronel indicated that the revised budget includes adjustments based on requests from the federal government, such as increased spending on social security benefits alongside a decrease in the Bolsa Familia welfare program’s expenditures, which allocates monthly cash transfers to eligible families. The annual budget bill’s approval typically occurs before the end of the previous year; however, this year’s delay highlights the challenges encountered by President Lula’s administration in working collaboratively with Congress.
In summary, Brazil’s 2025 budget bill now projects a primary surplus of 15 billion reais, adjusted from earlier proposals. The revisions are geared towards improving revenue forecasts and addressing federal government priorities. As such, this budget reflects ongoing fiscal challenges and strategic adjustments under the current administration’s framework. The process underscores the complexities of governance and congressional dynamics under President Lula.
Original Source: money.usnews.com
