Last freeze of the year is to accommodate public accounts with higher-than-expected expenses
The federal government formalized a blockade of R$6 billion in the 2024 Budget. Expenses are being contained to comply with the new fiscal framework, which is in its first year.
The data was published this Friday (22.Nov.2024) in the Bimonthly Revenue and Expense Assessment Report, the last of the year. The document is prepared by .
Despite the blockade, the government did not make contingencies. Understand the difference:
- lock – the government reviews Budget expenses, which were higher than allowed by the fiscal framework. It is more difficult to reverse;
- contingency – occurs when there is frustration in expected revenues in public accounts.
The Minister of Finance, , had said on Thursday (21.Nov.2024) that the blockade would be around R$5 billion, lower than the announced R$1 billion.
“Maybe it’s a little more, but it’s around R$5 billion. It’s a blockade because revenue is meeting expectations”these.
The fiscal framework determines a tolerance interval of 0.25 percentage points of GDP (Gross Domestic Product) for the primary balance annually. Even with the goal of zero deficit, the government may have a gap of R$28.8 billion to comply with the law.
This report will receive updates.
