The National Treasury Secretariat released the Fiscal Projections Report for the second half of last year, a document that points to a worsening of public accounts, this Tuesday (13).
According to official estimates from the Ministry of Finance, the government’s accounts are expected to remain negative until 2027 – the first for the President of the Republic who will be elected at the end of this year. The previous document, released in July, projected the accounts in the blue. The Treasury points to a worsening in the government’s accounts despite the validity of the so-called “fiscal framework”, the new rule for public accounts approved in 2023.
According to these rules, there is an understanding that expenditure cannot grow by more than 70% of the increase in revenue; the increase in spending is limited, in real terms, to 2.5% per year and the framework seeks to contain the growth of public debt in the future.
The authorization to carry out expenditures outside the fiscal target, due to exceptions, is a constant criticism by analysts of the rules adopted for public accounts./ The perception is that this makes fiscal balance difficult.
