The expenses limit established by the Brazilian fiscal framework should be raised from 2027 to incorporate excess payments ordered by courtTuesday said Tuesday Rogerio Ceron.
Ceron said there was still no government decision on the matter, but that an eventual extension should be limited to the amount necessary for those paymentswithout allowing other additional expenses.
Payments ordered by the courts are expected to range between US $ 5,250 million and US $ 6,990 million.
“Given the level of payments ordered by the courts, which is not going down, perhaps the country cannot resolve this in the short term”said.
The Supreme Federal Court of Brazil allowed part of the payments to be paid outside the fiscal framework until 2026, But from 2027 they will be included again in the spending limit, so that the Government already provides for a restriction of public accounts.
He also said that Brazil is committed to its fiscal rules, but that reforms are necessary to guarantee its preservation. The recent fall in raw material prices, as well as the strengthening of the Brazilian currency, affect the country’s tax revenues, he added.
