Of the amount announced, there was an increase of R$2.1 billion in the blocking of expenses; in July, the freeze reached R$15 billion
The government announced this Friday (2nd September 2024) that it reversed the contingency of R$ 3.8 billion that had been done in the 3rd quarter due to the increase in revenue. In return, it will make a additional block of R$ 2.1 billion in discretionary (non-mandatory) expenses in the 2024 Budget. The measure is in compliance with the new fiscal framework, which establishes the spending limit to comply with the law.
In practice, with the reversal, the resource freeze drops from R$15 billion to R$13.3 billion. The data was published this Friday (2nd September) in the Revenue and Expenditure Assessment Report for the 4th two-month period of 2024. Here is the full of the document (PDF – 3 MB).
The blocked amount is given on discretionary expenses (not mandatory) while the contingency is made due to revenue frustration. Earlier, the Poder360 found that the containment would be less than R$5 billion.
RHOMBUS PROJECTION
The federal government increased the estimate of the deficit in public accounts in 2024 to R$ 28.3 billions. The previous projection was released in July and showed a deficit of R$32.6 billion.
The new estimate exceeds the fiscal target range for this year by R$28.3 billion, which establishes a tolerance range of 0.25 pp (percentage point) of GDP for the primary balance. In practice, the government could spend up to R$28.8 billion more than its revenues. The target itself is zero deficit, but there is this margin of tolerance.
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