Brazil’s fiscal outlook and perspectives

Turim MFO held this Thursday the #webinar O Panorama Fiscal Brasileiro, with the presence of the secretary of the National Treasury, Bruno Funchal. During the event, mediated by our strategist Nelson Abrahao, Funchal debated the country’s economic scenario and the measures that are underway to control debt.

In particular, he highlighted the relevance of the Spending Ceiling approved in 2016, and that, even with extraordinary expenses, it remains a very relevant fiscal anchor. He also stressed that these expenses pose an additional challenge to public debt management, but that the Treasury has flexibility to adjust to market conditions.

Funchal also highlighted that recent collection indicators were a positive surprise, which makes possible a better result than expected in 2021, as the vaccination process advances.

Regarding new signs of continuity in the fiscal consolidation process, he explained that the adoption of additional objectives as a medium-term public debt target is under study, and that the Administrative Reform currently being discussed in congress would have an important fiscal impact in the medium/long term. deadline. Finally, the reduction of tax incentives is part of the fiscal adjustment plans in the coming years.