About this work
Congressional reductions to Lula’s proposed spending package did not resolve Brazil’s fiscal uncertainty heading into 2023. The December 2022 assessment saw limited scope for a large near term decline in risk premia and called for substantial adjustment to stabilize debt. It contrasted reversing tax cuts and retaining the spending cap with a major relaxation of fiscal rules that it considered unsustainable.
Abstract
Congressional reductions to Lula’s proposed spending package did not resolve Brazil’s fiscal uncertainty heading into 2023. The December 2022 assessment saw limited scope for a large near term decline in risk premia and called for substantial adjustment to stabilize debt. It contrasted reversing tax cuts and retaining the spending cap with a major relaxation of fiscal rules that it considered unsustainable.
Cite this work
Sergi Lanau, Martín Castellano, Jonathan Fortun (2022). Economic Views: Brazil’s Fiscal Package. Institute of International Finance.