Brazil’s new fiscal anchor presented to President Lula, replacing spending cap rule

On Friday afternoon (17), members of Brazil’s economic team presented the details of the new fiscal anchor to President Luiz Inácio Lula da Silva in a meeting at the Planalto Palace. The spending cap rule will be replaced by the new fiscal anchor.

The meeting was attended by several ministers, including Fernando Haddad (Finance), Rui Costa (Casa Civil), Ester Dweck (Management and Innovation), Simone Tebet (Planning and Budgeting), and Vice President Geraldo Alckmin.

No one commented on the meeting’s outcome. President Lula is yet to define the next steps in the project’s elaboration and the date of its publication.

Haddad said he didn’t know whether the measures would be released before or after the next Monetary Policy Committee meeting.

The team submitted the proposal two weeks ago, and the Ministry of Planning analyzed it last week.

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