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Brazil: understand the fiscal framework and the current government’s spending cap change

By Luís Batistela

The fiscal framework is a letter of intentions elaborated to replace the old spending cap of 2016, established by the Temer government.

New guidelines may be implemented as of July and count on greater tolerance in the relationship between collections and expenditures (primary surplus) carried out in the current term of President Lula.

On Tuesday (18), the Minister of Finance, Fernando Haddad, and President Luiz Inácio Lula da Silva (PT) delivered the final fiscal framework text to Congress.

The new regulations were announced on March 30 - at a press conference - by Haddad, together with Planning . . .

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