BRASILIA (Reuters) -Brazil’s Finance Minister Fernando Haddad said the government is trying to precisely identify the impact of revenue shortfalls from past tax changes, admitting they have an “important” influence on President Luiz Inacio Lula da Silva’s new fiscal rules.
Speaking at an event hosted by BTG Pactual, Haddad said that the ministry had observed considerable frustration in public revenues since July.
He said the government was calculating a shortfall of around 50 billion reais ($10.2 billion) this year, partly as a result of tax changes during prior administrations. Those funds had been factored into estimates for a primary deficit below 1% of gross domestic product (GDP) for 2023.
Since leftist Lula said the government did not need to eliminate its primary budget deficit in 2024 as outlined under new fiscal rules, there has been growing speculation among political leaders that next year’s fiscal target may be revised, a matter Haddad has avoided addressing directly.
($1 = 4.9052 reais)
(Reporting by Marcela Ayres, editing by Ed Osmond and Sharon Singleton)
