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[BUSINESS] · Brazil · 25 sources

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Brazil Finance Minister maintains 2027 budget surplus forecast

Finance Minister Dario Durigan has reaffirmed that the Brazilian government expects to maintain a primary budget surplus for 2027. He emphasized that recent social and economic initiatives, including a 15% adjustment to Bolsa Família benefits and fuel subsidies, were planned within existing fiscal rules and the current fiscal framework without requiring changes to spending limits.

To accommodate new expenditures, the government plans to reallocate approximately R$ 20 billion in the 2027 budget. Durigan noted that public accounts have improved by R$ 200 billion since 2023 compared to the previous administration. He also highlighted the use of increased oil royalty revenues and taxes to fund fuel subsidies, a strategy linked to global oil price volatility caused by conflicts in the Middle East.

Durigan also addressed political proposals from opposition candidate Flávio Bolsonaro, specifically criticizing a plan to suspend debt payments for individuals and companies. The minister argued such a move would constitute a R$ 3 trillion default, potentially crippling the credit system and limiting financing for housing and agribusiness. Instead, the government is promoting the Desenrola 3.0 program, which aims to renegotiate debts with discounts of at least 90%.

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Brazil · Darío Durigan · Flávio Bolsonaro · Luiz Inácio Lula da Silva · Ministry of Finance

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