Brazil's president-elect faces R$1.18 trillion debt interest burden

Brazil's president-elect faces a fiscal crisis as public debt interest payments exceed R$1.18 trillion annually, threatening public services and investment. The government projects an R$80.9 billion deficit this year, worsened by pre-election measures, while mandatory spending consumes 92% of the federal budget. Experts urge restoring fiscal credibility and addressing budget indexation. Economists warn that adjusting pensions, social assistance, health, and education spending is unavoidable, though some advocate for broader fiscal governance reforms rather than just spending cuts.