Brazil government sets parameters for economy next year

Brazilian President Jair Bolsonaro has sanctioned the Law on Budget Guidelines for 2023. The text estimates the country’s minimum wage at BRL 1,294 for next year and a primary deficit of BRL 65.91 billion for the public accounts of the Central Government—which encompasses the National Treasury, social security, and the Central Bank.

The primary deficit is the negative outcome of the government’s accounts disregarding the payment of interest on the public debt.

In a statement, the president’s advisers predict a real growth of 2.5 percent in the nation’s gross domestic product (GDP) in 2023.

The target for Brazil’s consumer price index IPCA, the official gauge for inflation, stands at 3.3 percent, with the benchmark interest rate Selic at ten percent, and an average exchange rate of BRL 5.3 next year.

The document sets the goals and priorities for public spending and provides the parameters for drafting the Budget Law 2023. It had been approved in Congress in July.