Brazil TCU orders Treasury to project debt under lower fiscal target

Brazil's Federal Court of Accounts (TCU) has ordered the National Treasury to include a ten-year public debt trajectory projection based on the lower limit of the fiscal target in the 2027 Budget Guidelines Bill (PLDO), citing a misalignment between the target center used for debt projection and the lower limit guiding budget execution. This decision introduces fiscal uncertainty and may pressure the government's fiscal credibility, though the immediate market impact is limited as it is a procedural directive.