[ad_1]
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.

[ad_2]
SOURCE