Brazil’s Congress approved a 2025 budget anticipating a primary surplus of 15 billion reais, significantly increased from prior projections. Sponsored by Senator Angelo Coronel, the bill awaits the president’s signature to become law. The budget reflects revisions in revenue forecasts and incorporates requested changes in spending on social benefits, amid ongoing challenges in congressional relations.
On Thursday, Brazil’s Congress approved the 2025 budget bill, which anticipates a primary surplus of 15 billion reais ($2.66 billion) for the central government. This figure is a marked increase from the 3.7 billion reais projected by the government in August. The bill, sponsored by Senator Angelo Coronel, reflects enhanced revenue projections that have led to an improved forecast of the primary balance.
The legislation requires the signature of President Luiz Inacio Lula da Silva to become law. In 2023, Lula implemented a new fiscal framework that sets a primary balance target while capping expenditure growth at 2.5% above inflation. This year, the government aims for a zero primary deficit, allowing for a deficit up to 30.9 billion reais without breaching the fiscal rule.
Senator Coronel noted that he made adjustments to the budget based on the federal government’s requests. These changes include increased allocations for social security benefits and a reduction in funding for the Bolsa Familia welfare program, which provides monthly cash transfers to beneficiaries. The approval of the budget is typically completed by the end of the preceding year, and the current delay highlights the difficulties faced by Lula’s leftist administration in managing relations with Congress.
The approval of Brazil’s 2025 budget bill, projecting a primary surplus significantly higher than previous estimates, underscores the government’s improved revenue expectations. Key amendments reflect federal priorities, particularly in social security spending. However, the delay in passing the budget illustrates the ongoing challenges in the relationship between President Lula’s administration and Congress, necessitating continued negotiation and cooperation.
Original Source: www.tradingview.com
