The Minister of Finance confirmed this Thursday (21) that the federal government will block around R$5 billion in the 2024 Budget. The exact amount, according to him, still depends on a variable being analyzed by the Ministry of Planning ( MPO), but a new contingency will not be necessary this year.
The , and will be announced this Friday (22) by the Budget Execution Board (JEO).
“Revenue continues to come in line with what was projected by the Treasury. The expense will require new blockages”, the minister told journalists.
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With this new blockade, the total value will reach R$18.3 billion this year and will be part of the revenue and expenditure assessment report to be announced by JEO. Government technicians state that the growth in mandatory social security expenses was the main factor for the blockade, while expenses with the Continuous Payment Benefit (BPC) rose less than expected.
Since July, the government had already adopted preventive control over discretionary expenses of ministries, restricting maintenance and investment expenses. This strategy helped accommodate the need for new cuts now, but the growing pressure on public accounts maintains concerns about fiscal sustainability.
At the same time, the long-awaited spending cut package, which will take effect from 2025, was postponed again. Haddad confirmed that the guidelines still need to be presented to the president (PT), in a meeting that would take place this Friday (22), but was rescheduled for Monday (25).
“We are going to discuss with him the wording of one or another detail, including the agreement that was made with the Defense, which he only learned about informally from me today [quinta]”, he pointed out.
The package is a response to the financial market’s concern about the country’s fiscal trajectory and should generate estimated savings of approximately R$70 billion in the first two years. In 2025, the forecast is for R$30 billion in relief in public accounts, while in 2026 the impact should reach R$40 billion.
Haddad avoided confirming the exact numbers, but assured that the measures “will be sufficient to reinforce the fiscal framework”.
The official presentation of the package, initially scheduled for this week, could take place on Monday or Tuesday (26), depending on the decision on how the announcement will be made.
