Brazil’s government enhances fiscal outlook in 2021
Brazil’s government has revised its expected primary deficit for the current fiscal year, citing improved revenues that have led to a slight reduction in the deficit forecast. The primary deficit for 2024 is now projected to be 28.3 billion reais, down from the previous estimate of 28.8 billion reais. This revision was made possible by higher revenue projections, including measures to offset a costly payroll tax exemption and expectations of larger dividends. Despite the improved outlook, the government still needs to block an additional 2.1 billion reais in spending to comply with budgetary rules limiting expenditure growth. This adjustment is necessary to offset rising projections for social security expenditures, which were previously underestimated. The government remains committed to maintaining a zero deficit for the year with a tolerance margin of 0.25 percentage points of GDP.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.