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Brazil Congress committee backs 2026 primary surplus target of 0.25% of GDP

BY Reuters | ECONOMIC | 12/04/25 05:34 AM EST

BRASILIA, Dec 4 (Reuters) - Brazil's joint budget committee late on Wednesday approved a 2026 primary surplus target of 0.25% of gross domestic product (GDP) in the budget guidelines bill.

* Brazil would aim for a first positive annual balance since President Luiz Inacio Lula da Silva took office in 2023 for his current term.

* The target includes a tolerance band of 0.25% of GDP either side, allowing the government to post a zero primary balance and remain in compliance.

* The bill still needs to be approved by a joint session of Congress.

* Approval in a joint session is typically completed by July, but the process was delayed this year.

* Lawmakers had pushed for clarity and a timetable for the release of public funds allocated directly by them in so-called budget amendments. (Reporting by Marcela Ayres; Editing by Gabriel Araujo)

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