Real Sells Off as Brazil Taxes Remittances to Shore Up Budget

Real Sells Off as Brazil Taxes Remittances to Shore Up Budget

Brazil will freeze 31 billion reais ($5.5 billion) in spending and raise a tax on financial transactions in a bid to assuage investors increasingly skeptical of President Luiz Inacio Lula da Silva’s fiscal promises.

The government of Luiz In cio Lula da Silva (PT) takes measures to contain the gap between the p blicas accounts under pressure or the circunist. When it does, it refers to amendments that n see the causes of the brio or amment rio. In the worst moments, obvious improvises compromise the credibility of the pticica econ small. It was what happened on Friday (22). Read more (05/23/2025).

The government of Brazilian president Luiz Inacio Lula da Silva announced this Thursday that it will retain R$31.3 billion (5.550 million) in this year’s budget expenditures to comply with the country’s fiscal rules. AFP The adjustment measures, mentioned in the bimonthly report of collection and expenses, also provide for the increase of taxes charged to companies by financial operations. Finance ministers Fernando Haddad, and Planning, Simone …

Incentive government consumption, but it freezes investments. Will we have a short fall and fall in the economy?

The 2025 budget will have a freeze of R$ 31.3 billion for non-compulsory expenditure, reported recently by the Ministry of Finance and Planning. The value is contained in the Biannual Report on Assessment of Revenues and Expenditure, a document sent to the Congress every two months to guide the implementation of the Budget. Of this total, R$ 20.7 billion will be contingent, temporarily blocked to meet the primary result target. Although the 2025…

Primary result meta is zero, but allows up to a deficit of R$ 31 billion