Brazil’s government hikes estimate for 2023 budget deficit

BRASILIA (Reuters) – Brazil’s finance ministry forecast a primary budget deficit of 136.2 billion reais ($27.22 billion) this year, compared to 107.6 billion reais projected in March, according to its bi-monthly revenue and expenditure report released on Monday.

According to the report, this year’s budget is 1.7 billion reais over the spending ceiling, indicating the government would need to find additional funds elsewhere.

While Brazil’s target for the 2023 primary deficit sits at 228.1 billion reais, Finance Minister Fernando Haddad has promised to reduce it via spending cuts and seeking new revenue streams to a deficit goal of around 100 billion reais.

($1 = 5.0033 reais)

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