Government indicates blockade of BRL 1.5 billion in the budget and raises estimate for deficit in accounts in 2023

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The Ministries of Planning and Budget and Finance announced this Friday (21) that it will be necessary to block R$ 1.5 billion in this year’s budget. The information is contained in the budget revenue and expenditure report for the third quarter of this year. The report is released every two months. The details of which ministries will have their funds limited will only be released at the end of this month. Contingent expenses involve investments and funding of the public machine. The blockade is necessary to ensure compliance with the spending ceiling, a fiscal rule that limits most of the Union’s expenses to inflation variation. That rule is still in effect this year. The economic team hopes to approve, at the beginning of the second semester, the fiscal framework project, a set of tools that will replace the spending ceiling. The text has already passed through the House and the Federal Senate. But, as it was changed, a new analysis by the deputies will still be necessary. Debt in the accounts The Ministries of Finance and Planning also increased the forecast for the deficit in the government’s accounts this year. The expectation of the economic area is that the so-called primary deficit will be at R$ 145.4 billion, against the previous projection, made in May, of a negative result of R$ 136.2 billion. The government was authorized by Congress to have a gap of up to R$ 231 billion this year. The primary deficit occurs when expenditure exceeds revenue and does not consider expenditure on interest on the public debt. When revenues are greater, the result is a surplus.

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