Treasury says it will seek fiscal-target midpoint through legal measures
Published · Updated
What happened
Finance Ministry Executive Secretary Dario Durigan said on October 27 that the government will aim for the center of the fiscal target and is preparing legal measures and other adjustments, pending President Luiz Inacio Lula da Silva's authorization.
Why it matters
The statement gives markets and Congress a new policy marker on how the government intends to handle the fiscal rule in coming days. It also indicates that tighter budget execution or formal rule changes are being prepared, which can affect rate expectations, spending plans, and coalition bargaining.
On October 27, Executive Secretary Dario Durigan said the federal government will pursue the center of its fiscal target using formal legal measures and that the Finance Ministry is studying adjustment steps for announcement after presidential authorization. He also said the government may return to Congress for rule changes if needed and will seek compliance through dialogue. The statement is a concrete 24-hour policy signal because it ties the post-election macro line to near-term budget execution and possible legislative action rather than to a general commitment alone.
Watch for
Presidency of the Republic authorization or Casa Civil publication of a fiscal-adjustment measure in the Official Gazette between 2026-10-28 and 2026-10-31 Finance Ministry release detailing spending-containment or revenue measures tied to the fiscal target by 2026-10-31 National Treasury or Planning and Budget Ministry announcement of changes to discretionary spending execution limits for 2026 by 2026-10-31 Chamber of Deputies or Federal Senate filing of a government bill or rule-change request on the fiscal framework by 2026-10-31
Sources
- Ministério da Fazenda avalia medidas para garantir a meta fiscal · agenciabrasil.ebc.com.br
- Governo buscará cumprir meta fiscal com diálogo, diz Durigan · agenciabrasil.ebc.com.br
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