BRASILIA — The Brazilian government is preparing to announce a wider block on ministerial spending in an effort to adhere to the nation’s strict budget cap, Finance Minister Dario Durigan revealed.
The current spending restriction is set at 1.6 billion reais ($320 million), but the administration is expected to increase this figure. The formal adjustments will be unveiled in the government’s bimonthly revenue and expenditure report.
In a recent interview with CNN Brasil, Durigan explained that while the spending limitations are being expanded, a complete and hard “spending freeze”—a severe measure triggered only when the country is in danger of missing its overall fiscal objective—will not be required.
“We are moving toward an increase in the block, so the government is cutting into its own flesh,” Durigan stated, emphasizing the administration’s willingness to make internal sacrifices.
The Finance Minister noted that federal revenue collections have aligned with initial projections. However, he maintained that the government must remain committed to a steady path of fiscal stabilization, which demands active measures to keep rising public expenditures under control.
For the current fiscal year, Brazil has established a primary surplus target of 0.25% of Gross Domestic Product (GDP), allowing for a 0.25% margin of flexibility in either direction. Earlier estimates calculated a primary surplus of roughly 3.5 billion reais, placing the target at approximately 0% of GDP.