Accounting-Fiscal Makeup does not change reality

The primary result is a calculation From the collection less the expenses, excluding financial expenses. The exclusion of interest rates and the amortization of the metric debt aims to verify that the government closes the bills in blue, at least from the operational point of view. This calculation does not mean that the government is failing to pay the main amortization and debt service. It serves only as an accounting metric of long -term debt sustainability.

In other words, for today, the government was able to stabilize public debt, it would be necessary a primary of 2% of the. Needless to say, we are far from this, with a 0.4%a prime, even counting a series exclusions that go far beyond financial expenses.

Initially the primary result was built only with exclusion from financial expenses. However, today, in addition to interest and amortization, there are a number of exclusions of the calculation, such as precatory and expenses with natural disasters. A report from Estadão showed that since the beginning of this government, with next year’s projection, the Lula administration left R $ 387 billion outside the fiscal target. It is as if to pass a bad student, an average student 2, you stop considering your math, Portuguese and chemistry grades, and with that, your overall grade to 5.0. It is evident that exclusion only made the student pass through the year, not making him a good student.

The same reasoning applies to the exclusions of variables from the primary result. In calculating the fiscal target, the government did not consider spending on the transitional PEC, part of the precatory, emergency plan with the rains in Rio Grande do Sul, the aid of sectors affected by Trump tariffs, among others. Setting these expenses are paid the same way. The government may even manipulate the accounting metric, but does not change reality: debt only grows.

*This text does not necessarily reflect the opinion of the young Pan.