In its new version, filed on Monday night (16), the text of the Budget Guidelines Law (LDO) determines that the government will only need to target the center of the fiscal target until October 2025.
The opinion of senator Confúcio Moura (MDB-RO), LDO rapporteur, prevents the economic team from doing its calculations using the lower floor of the band as a basis and implementing a smoother adjustment of public finances.
The primary result target for 2025, as well as this year, is zero deficit. However, there is a tolerance of 0.25 percentage points of GDP for more or less (surplus of 0.25% of GDP or deficit of 0.25%).
The Federal Audit Court (TCU) has already warned the government about the practice of targeting the lower limit of the result.
This leads to a smaller expenditure freeze in the bimonthly primary income and expenditure assessment reports in order to achieve the primary outcome target.
This practice has also been criticized by market analysts and legislative consultants in the National Congress.
According to the report by Confúcio Moura, compliance with the primary result target must be demonstrated by the bimonthly report — which points out the need for possible budgetary blockages — and the use of the tolerance interval will be permitted “only from the end of the fifth two months ”.
In other words: only in the last bimonthly report, to be released in November 2025, will the government be able to consider a deficit of 0.25% of GDP as the necessary result to meet the target.
