The projection is worrying because it brings an increase in the primary deficit compared to last year (R $ 43 billion); Even if there was no growth in the primary deficit, the situation would already be foolhardy
The Federal Senate Independent Fiscal Institution (IFI) provides for a break of R $ 71 billion in. The projection is worrying because it brings an increase in the last year (R $ 43 billion). Even if there was no growth in the primary deficit, the situation would be foolhardy. To give you an idea, to stabilize public debt, it would be necessary a 2% GDP surplus.
However, since 2014, except 2022, we have presented negative results in successively in public accounts, even excluding interest expenses. To make matters worse, the government does not signal that will face the issue. On the contrary, the approach of the election year tends to have the opposite effect: more spending, with the consequent increase in public debt.
However, the level of public debt begins to become dangerous (close to 80% of GDP), with real risk of default. If this happens, the Brazilian population will pay with high inflation, and a strong drop in income and unemployment. It is time for the government to take the projections of the independent tax institution seriously. While it’s time.
*This text does not necessarily reflect the opinion of the young Pan.
