The government announced plans to cut BRL 31.3 billion from the 2025 budget to meet fiscal rules and plans to raise the tax on financial transactions.
Brazil’s government announced that it will implement measures to slash BRL 31.3 billion (USD 5.58 billion) from the 2025 budget to meet fiscal rules.
The Finance and Planning Ministries report also states the government must block BRL 10.6 billion in expenses to meet the 2.5% growth cap above inflation. It must also halt BRL 20.7 billion in spending to hit the zero primary deficit target, with a 0.25% GDP tolerance margin. Transport Minister Renan Filho revealed the scope of the cost-cutting effort in a report.
In 2023, President Luiz Inacio Lula da Silva introduced a fiscal framework combining a primary budget target with limits on public spending growth. The system enforces spending blocks for excessive expenditure growth and freezes when revenues fall short.
Earlier, Brazil’s government submitted its draft 2025 budget proposal to the National Congress on 30 August 2024.
