Brazil’s administration plans to announce Friday that it will broaden spending restrictions across government departments to comply with annual budget limits, according to Finance Minister Dario Durigan, who made the statement Thursday.
Current spending restrictions total 1.6 billion reais ($320 million). Officials have set the release of their twice-monthly revenue and spending report for 3 p.m. local time (1800 GMT) Friday.
During a CNN Brasil interview, Durigan explained that while spending limitations will grow, officials won’t need to implement a complete spending freeze — an action taken when economic officials believe the annual fiscal goal might be missed.
“We are moving toward an increase in the block, so the government is cutting into its own flesh,” the minister said.
Durigan noted that federal income has matched projections, but emphasized the administration should maintain steady progress toward fiscal stability, including measures to control growing expenditures.
Officials aim for a primary surplus of 0.25% of GDP this year, allowing for variation of 0.25% either way. In March, they projected a primary surplus of 3.5 billion reais, approximately 0% of GDP, for the current year.
($1 = 5.0055 reais)
