Haddad signals that he may change the 2025 fiscal target and not achieve a surplus

Minister Fernando Haddad, of Finance, stated this Monday (8) that the government is awaiting a “clearer definition” of the economic projects being processed in Congress to establish whether it maintains the fiscal target of a surplus of 0.25% of GDP for the next year.

Haddad says that the government will send the 2025 Budget Guidelines Bill (PLDO) on April 15, and that the economic team is carrying out the necessary calculations and that there is a possibility of change.

“Let’s remember that this goal was announced in March last year, when the Fiscal Framework was presented. Since then, a lot of good things have happened, but we have had some setbacks that will have to be considered, and we still have some insecurity regarding the final result of the negotiations. [no Congresso] this semester in relation to important themes”, stated the minister after a meeting with President Luiz Inácio Lula da Silva (PT) at Palácio do Planalto.

Regarding the possible change in the 2025 fiscal target to zero, Haddad questioned the effectiveness of a positive primary result if it is not sustainable. “We are looking to do something thinking about the sustainability of the accounts”, he added.

In addition to the meeting with Lula, Haddad met with the president of the Senate, Rodrigo Pacheco (PSD-MG), at a lunch to discuss the government’s priority agendas in the economic area, describing the meeting as “very important”.

The minister highlighted that fiscal planning depends on compensation and sources of financing to cover waivers or new expenses. “There is no way for us to settle the accounts if these principles are not established,” he stated, highlighting the importance of recovering the terms in the Fiscal Responsibility Law.

“We’ve made progress, we’ve improved, but it’s still not enough. We need one last effort to complete this process, because for the investor who doesn’t look so much at what will happen that year, that week, that month, he looks at what will happen in the country’s future, he draws a curve to know what it will happen with public debt, with interest rates”, concluded Haddad, highlighting the Senate president’s commitment to this initiative.