Bolsonaro and Lula's Fiscal Balances: An Impartial Assessment

Recently, Finance Minister Dario Durigan emphasized that the government is not spending more than it collects. He highlighted that while fiscal trajectory has been a key factor in determining interest rates, it is not the only issue at play. Durigan noted he followed recent fluctuations and rises in interest rates, stating they are not necessarily reflective of an worsening fiscal performance. 'International risk assessment agencies have improved our ratings throughout the year,' said Durigan. He also pointed out that while there has been a primary deficit recorded by the central government in 2023, the country is closing the gap on its fiscal balance with projections close to equilibrium for the final accounts. Additionally, state-owned enterprises like Correios face financial challenges, but the situation is not generalized. These developments reflect a complex dynamic in current economic policy where both debt control and public spending sustainability are focal points, alongside international confidence in fiscal programs.