Brazil’s 2026 budget bill projects primary surplus of 0.25% of GDP

By Marcela Ayres

BRASILIA (Reuters) -Brazil’s 2026 annual budget bill, submitted to Congress on Friday, projects a primary surplus of 34.5 billion reais ($6.36 billion) for the central government, equivalent to 0.25% of the country’s gross domestic product.

The forecast meets the 0.25% of GDP primary surplus target for next year proposed by President Luiz Inacio Lula da Silva’s government in April, still pending congressional approval.

The calculation, however, excludes 57.8 billion reais in expenses not counted toward the fiscal target, notably linked to court-ordered payments. Without this adjustment, the projection would show a primary deficit of 23.3 billion reais, equivalent to a 0.17% of GDP shortfall.

Many economists have criticized the exclusion of large expenditures from Brazi