LatinNews Daily - 23 July 2024

*Brazil’s ministry of planning & budget has released the latest edition of its Relatório de Avaliação de Receitas e Despesas Primárias, a bi-monthly report to monitor whether the government is on track to meet its fiscal targets. The report confirmed an announcement last week made by the finance minister, Fernando Haddad, in which he said that the government would freeze R$15bn (US$2.7bn) of planned expenditure for 2024. The planning & budget ministry projects the federal government to close 2024 with a primary deficit which is less than R$28.8bn (0.25% of GDP). Although the government had set a zero-deficit target for this year, the existing 2024 budget law allows for a 0.25% deficit, which government officials expect to be achievable with this spending freeze. Of the R$15bn in suspended expenditure, R$11.2 has been completely frozen (‘bloquieo’), while R$3.8bn has been restricted conditionally (‘contingenciamento’). The conditionally restricted funds could be spent if the fiscal outlook becomes more favourable, such as if the government is able to boost its revenue by passing legislation to phase out tax breaks.