Brazil's Finance Minister to Present Measures Targeting Fiscal Goal Center

Brazil's Finance Minister Dario Durigan announced Tuesday that the government will present measures to pursue the center of the fiscal target and expects "rationality" from the financial market following Monday's asset sell-off. The 2027 fiscal target is a surplus of R$73.2 billion (0.50% of GDP), with a lower tolerance limit of R$36.6 billion. The government proposes allowing budget contingency measures to target the center rather than the floor, which currently reduces fiscal effort. The measure aims to improve the primary result, curb gross debt growth (now at 82.9% of GDP), and support lower interest rates. Durigan said a complementary bill could suffice, though some officials cite the need for a constitutional amendment.