INSUBCONTINENT EXCLUSIVE:
The proposal aims to reduce government spending by R$ 30 billion in 2025 and R$ 40 billion in 2026.The government faces pressure to announce
a fiscal adjustment package
In recent weeks, officials have emphasized the need to review public expenditures
fiscal framework rules approved in 2023
This change would limit wage growth to a maximum of 2.5% above inflation.The government aims to apply the same spending cap to mandatory
expenses like social benefits and unemployment insurance
The minister suggested that military pension reforms could be added to the spending reduction plan.The economic team and other ministers
have held multiple meetings with President Lula
Disagreements have arisen within the administration about the package
Significant Budget Cuts for 2025-2026Several ministries have been involved in these discussions
balancing act between fiscal responsibility and maintaining social programs
It highlights the challenges of implementing budget cuts while preserving popular support.As Brazil navigates these economic decisions, the
Lula da Silva, reported a primary deficit of R$22.404 billion ($4.11 billion) in August 2024.This deficit decreased by 19.6% in real terms
compared to the same month last year
The accumulated deficit for the year reached R$99.383 billion ($18.24 billion)
The National Treasury released these figures on Thursday, October 3, 2024.The nearly R$100 billion ($18.24 billion) accumulated deficit was
9.1% lower in real terms than the R$109.313 billion ($20.06 billion) recorded from January to August 2023.Over 12 months, the negative
