SAO PAULO (Reuters) -Brazil’s government will need to tighten spending curbs in order to comply with its fiscal framework this year, it said in a bimonthly revenue and expenditure report published on Monday.
The report, released by the Planning and Finance ministries, showed the spending block will now amount to 12.1 billion reais ($2.27 billion), up from 10.7 billion reais in the previous report published in July.
Latin America’s largest economy targets a zero primary deficit this year, but with a tolerance band of 0.25% of gross domestic product in either direction, meaning that a 31 billion real deficit would still allow it to meet the target.
The government estimated Brazil’s primary deficit to reach 30.2 billion reais this year, wider than a previously estimated 25.6 billion reais but still within target.
Brazil’s 2025 primary spending forecast remained virtually unchanged at 2.42 trillion reais, while its net revenue projection was revised slightly down to 2.34 trillion reais, from 2.35 trillion reais.
($1 = 5.3360 reais)
(Reporting by Isabel Versiani; Writing by Isabel Teles; Editing by Gabriel Araujo and Marguerita Choy)
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