Change was announced late on Friday night (Nov 29), a week after the government announced a R$6 billion containment
The president’s government Luiz Inácio Lula da Silva (PT) reduced the blockade in the 2024 Budget to R$4.3 billion. The drop was R$1.7 billion in relation to the previously announced value, . The announcement was made late on Friday night (Nov 29, 2024).
The change came in a new Bimonthly Income and Expense Assessment Report, technically called “extemporaneous”. Here is the document (PDF – 2 MB).
The change in the spending freeze came especially for 2 reasons:
- a new cut in transfers from the law to promote Aldir Blanc culture in R$ 1.3 billion;
- increase of R$2.7 billion in revenue expectations with the so-called “Desenrola Agências”, the regulatory agencies’ debt regularization initiative.
With the decision, the amount frozen throughout 2024 fell from R$19.3 billion to R$ 17.6 billionwhen considering blockages and contingencies.
The minor lockdown did not change the projections of luck of the economic team. The surprise report maintains the expectation of R$28.7 billion in deficit in public accounts at the end of 2024. The amount is close to the tolerance limit established by the fiscal target.
The objective is to end the deficit in public accounts. In other words, it is necessary to equalize expenses and income. However, the fiscal framework determines a “band” of 0.25 percentage points of GDP (Gross Domestic Product) for the primary result. Even with the target, the government may have a gap of R$28.8 billion to comply with the law.
IN THE DEAD OF THE NIGHT
Once again, the president’s economic team (PT) makes an announcement of economic relevance late on a Friday night. The new report was only released by the Ministry of Planning and Budget at around 9:20 pm. There was no advance notice.
The text was published on the eve of the deadline to sign the budget programming decree, which ends on Saturday (Nov 30).
The surprise report goes against what Lula promised for his 3rd term. He had said in his speech that “important decisions” would not be disclosed “in the dead of night”.
“The major political decisions that impact the lives of 215 million Brazilians will not be taken in secrecy, in the dead of night, but after a broad dialogue with society”declared on January 1, 2023.
This report will provide more information.
