Gap Goes up to US$ 135 billion and Treasury Says that The Fiscal Margin for a New Bailout against Covid-19 Is Limited

Cabinet says that fiscal space to implement new measures to tackle the pandemic is limited

Brasília

The federal government's accounts registered a primary deficit of R$ 18.2 billion in November. Under the impact of the Covid-19 pandemic, the accumulated gap in the first 11 months of the year reached R $ 699.1 billion (US$ 135.2 billion), as informed by the National Treasury on Tuesday (29).


Although the government avoids affirming that the country is going through aggravation of the health crisis, the organ of the Ministry of Economy speaks of a second wave and says that there is no margin in next year's Budget for new measures to fight the disease.

- Minister Paulo Guedes - Foto Albino Oliveira - Ascom/ME


In the document, the agency defended that the fiscal sustainability of the country should be prioritized, with a reduction in the mandatory spending and respect for the spending ceiling, a rule that limits the increase of public spending to the variation of inflation.


According to the Treasury, these actions will allow an improvement in the expectations of economic agents, making it possible to reduce interest rates.

Translated by Cassy Dias

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