Brazil’s Finance Minister Dario Durigan said on Thursday that the government will maintain its fiscal framework and spending restraint policies under President Luiz Inacio Lula da Silva’s new term, despite recent calls for increased public investment.
Durigan, speaking to local radio CBN, emphasized that the administration has already undertaken a fiscal effort equivalent to 2% of GDP and is prepared to repeat the measure. The government has adjusted its discussions with Congress to target around 10 billion reais ($1.9 billion) in mandatory spending cuts for 2027, signaling a continued focus on fiscal discipline.
The announcement comes amid broader economic policy debates following October’s election and follows the central bank’s decision to reduce Brazil’s benchmark interest rate by 25 basis points to 14.00% in its fourth consecutive meeting this month. The move reflects ongoing efforts to balance growth with fiscal responsibility.
Durigan underscored the importance of institutional dialogue to sustain spending reductions and broaden the revenue base in a manner fair to the population, aiming for positive fiscal results as early as next year. The government’s stance aligns with its commitment to maintaining market confidence while addressing social and economic priorities.
