Brazil’s 2027 budget proposal will forecast a primary surplus of 0.1% of GDP, the Planning and Budget Minister Bruno Moretti said on Friday, marking a reduction from the government’s official target.
The government’s stated fiscal goal for 2027 is a primary surplus of 0.50% of GDP, but the upcoming budget bill will reflect a narrower surplus of 0.1%, according to Moretti’s announcement in an interview with Valor Economico. The discrepancy stems from the exclusion of certain expenditures from the calculation, including court-ordered payments.
The official target includes a tolerance band of 0.25 percentage points in either direction, allowing flexibility in meeting the surplus objective. Moretti did not specify whether the revised forecast would prompt adjustments to the broader fiscal framework or policy measures.
