Brazil 2027 Budget Targets 0.6% Primary Surplus, Fiscal Effort vs 2026

Brazil's government submitted the 2027 Budget Bill (PLOA) to Congress, projecting a primary surplus of 0.1% of GDP (0.6% after Fiscal Framework deductions), with net revenue at 19.3% and expenditure at 19.1% of GDP. This marks a modest fiscal tightening compared to the 2026 third-quarter estimate of 19% revenue and 19.3% expenditure, signaling continued consolidation. The credibility of the surplus target hinges on revenue assumptions and congressional amendments, which remain uncertain.