Brazil central bank applauds Lula's budget bill, stresses fiscal improvement need

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Brazil central bank applauds Lula's budget bill, stresses fiscal improvement need
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BRASILIA (Reuters) - Brazil's top central bank officials on Friday praised the government's commitment to eliminate the primary deficit in its 2024 ...

STORY CONTINUES BELOW THESE SALTWIRE VIDEOSBRASILIA - Brazil's top central bank officials on Friday praised the government's commitment to eliminate the primary deficit in its 2024 budget, saying fiscal improvement is vital for aligning inflation expectations with official targets.

Market participants surveyed by the central bank currently anticipate a 2024 primary deficit equivalent to 0.8% of Gross Domestic Product, but Campos Neto said the provisions should improve as the government's revenue-enhancing measures gain approval in Congress. Lula's new fiscal rules constrain expense growth to a percentage of the revenue increase, he noted, so that if revenues fall short, expenditures will also be limited.

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