Brazil: Currency Suffers Record-Breaking Crash over Socialists’ Fiscal Policy Battle
BreitbartDec 01
Brazil's Treasury Forecasts Multibillion Primary Deficit in 2024
Above: Brazil's Treasury Secretary Rogerio Ceron during an interview in Brasilia on July 27, 2023. Image copyright: Andressa Anholete/Contributor/Bloomberg via Getty Images
The Facts
Brazilian Treasury Secretary Rogerio Ceron told a press conference on Tuesday that the country's federal government is set to record a primary deficit of R$20B, or more than $3.3B, this year, meeting the fiscal target of zero deficit with a margin of 0.25% of gross domestic product (GDP).
This comes as late last month the government announced a tightening in spending to comply with fiscal rules and revised its primary deficit forecast to R$28.7B, roughly $4.8B at the current exchange rate.
The Spin
Narrative A
With a remarkable surplus in October and an expected strong finish to the year, Brazil is set to meet fiscal targets this year as the government has focused on increasing its revenues through taxes and slashing expenditures in an effort to maintain economic stability.
Narrative B
Though the Brazilian economy is outperforming expectations, government finances remain a matter of concern. Initially planned for next year, a primary surplus is now planned only for 2026 — and many expect that to occur only in 2029 amid fears that the government would run deficits within the tolerance margin.