Brazil fiscal gap widens: revenue revised up R$6.8bn, spending up R$22.1bn

Brazil's government released its fourth-bimester 2026 budget reassessment, showing net revenue revised up by R$6.8 billion (largely from income tax and dividend collections) but primary expenditure projections jumping by R$22.1 billion, driven by extraordinary credits from provisional measures. The widening fiscal gap signals deteriorating budget credibility and raises risks for Brazilian assets.