Brazil Raises 2023 Deficit Estimate, Fueling Market Jitters

  • Government expects more spending, less revenue this year
  • Revisions raise concern about Brazil fiscal discipline in 2024

      

Photographer: Vanderlei Almeida/AFP/Getty Images
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Brazil raised its estimate for this year’s budget gap to account for rising government spending and declining revenue amid a weakening economy.

The primary fiscal deficit, which doesn’t take into account interest payments, will reach 177.4 billion reais ($36.1 billion) this year, compared with a previous forecast of 141.4 billion reais, according to an official report published Wednesday.