Brazil to Target 2026 Fiscal Surplus Amid Market Doubts

Brazil’s government said it will seek a budget surplus next year, likely setting up a clash with investors who are skeptical about President Luiz Inacio Lula da Silva’s commitment to fiscal responsibility.

Latin America’s largest economy will target a primary surplus — which excludes interest payments — of 0.25% of gross domestic product in 2026, according to the budget guidelines bill sent to Congress on Tuesday. The proposal foresees the minimum wage rising to 1,630 reais ($277) per month in 2026, from 1,518 reais currently.