LatinNews Daily - 23 September 2025

*Brazil’s government has announced that it will freeze R$12.1bn (US$2.27bn) of the discretionary spending in its 2025 budget. The exact areas in which spending will be frozen have yet to be confirmed. Ministries and other federal agencies will have up to five working days to suggest which of their programmes and initiatives can have their spending plans readjusted. With this budget freeze, the government estimates that its primary deficit for 2025 will be R$30.2bn, which is below the limit of R$31bn, as laid out in Brazil’s 2025 budget guidelines legislation. The government must aim for zero primary deficit this year but is allowed to register a deficit equivalent to 0.25% of GDP, which is around R$31bn. In a government press release, the executive secretary of the finance ministry, Dario Durigan, is cited as highlighting the impacts of the tight monetary policy stance of the central bank (BCB), which is expected to cool economic activity this year, thereby limiting federal tax revenue.

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