The Presidential Palace presented to the Brazilian Congress the annual budget proposal for 2027, forecasting for the first time since 2014 a positive primary result, that is, a surplus. Lula's economic team attributes this forecast to the fiscal rules that limit the real growth of spending on public servants.
The budget also forecasts a minimum wage increase for 2027. This would be a continuation of the minimum wage valorization policy implemented by the government.
The context of this budget proposal is marked by compliance with the fiscal rules of Brazil's fiscal framework, which impose limits on the growth of the government's primary expenses. This situation represents a change from previous years, when the federal government used to present budgets with primary deficits.
The 2027 budget proposal marks an important milestone in Lula's government's fiscal management, showing a balance between maintaining social policies, such as minimum wage valorization, and meeting fiscal targets.
