Fiscal target 'more likely than expected six or seven months ago', says Treasury chief | Economy

The Minister of National Treasury, Rogerio Cerón, stated on Tuesday (23) in an interview with GloboNews that the country is more capable of achieving the fiscal target for 2024 than expected at the beginning of the year.

• The financial target is included in the 2024 budget and is subject to the rules of the new financial framework.
• This year, the government expected to run a deficit/surplus of zero—that is, spend exactly as much as it collects, without increasing or decreasing the federal debt.
• However, the target has a tolerance range of 0.25% of GDP up or down. In other words, the tolerance for a deficit or surplus is R$28.8 billion.
• If the target is not met, the government will face tougher rules by 2025: it will not be able to create jobs or provide above-inflation adjustments to benefits, for example – and will have to work harder to cut spending.

According to Rogerio Cerone, the report presented on Monday shows that the government has “credible conditions” to achieve the target – even if it is close to the maximum.

“In fact, we have shown everyone that we have taken the necessary measures when they were needed. The blockade, the emergency that will be implemented, as well as the report we have issued, show that the scenario for achieving the financial goal – contrary to what the majority believed at the beginning of the year that it is practically impossible to achieve, today this goal has become possible.”

“It requires effort, there are challenges ahead of us,” he added. “But it is… [o cumprimento da meta] “It's more credible and achievable than was expected six or seven months ago.”

In addition to the new budget and emergency forecasts, the government also revised spending estimates for continuous payment benefits — paid to needy seniors, the disabled and people with disabling illnesses — and Social Security benefits.

Both will cost R$11 billion in 2024, compared to what was expected in the budget.

This was stated by Clayton Luiz Montes, the alternate federal budget minister. The government will continue to aim for a target of zero deficit. In other words, expenditures are linked to income (zero deficit).

He stated that the interpretation of the legislation is that the government at this moment only needs emergency funds that exceed the legal limit: that is, the amount of 28.8 billion Brazilian reais.

Legal interpretation [e] The emergency was to be implemented only in an amount exceeding the minimum range. [intervalo permitido para o déficit]At R$3.8 billion. But I want to emphasize that other revenue measures are being taken and the target is being sought, it is still our compass here.”