Brazil’s government removes spending freeze to meet fiscal target

Published 22/07/2025, 20:46
Brazil’s government removes spending freeze to meet fiscal target

Investing.com -- Brazil’s government has fully eliminated the spending freeze that was previously deemed necessary to meet this year’s fiscal target, according to the latest bimonthly revenue and expenditure report released Tuesday.

The government had frozen 20.7 billion reais in May but has now completely removed this restriction. At the same time, the Finance and Planning Ministries slightly increased the spending block required to comply with the expenditure growth cap from 10.6 billion reais to 10.7 billion reais.

This spending block is part of the new fiscal framework that was approved in 2023 under President Luiz Inacio Lula da Silva’s administration. The framework established caps on government expenditure growth as part of Brazil’s fiscal management strategy.

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