Fiscal model to replace Brazil’s spending cap ready, minister says

Brazil’s Finance Minister Fernando Haddad said Monday (Mar. 6) that his team has finished the new fiscal framework that should supersede the country’s spending cap. The next step, he said, will be discussing the model with the government’s economic staff, before unveiling it to President Lula.

The ceiling currently in force limits the growth of most federal expenses to the inflation of the previous year.

Minister Haddad spoke after a meeting with the president. The revamped curb was expected to be presented to the president today.

The government hopes the change can help control spending and stabilize public debt with minimal harm to investment and other priorities.