Finance Minister Dario Durigan Promises Primary Surpluses by 2027 and Proposes Fiscal Reforms

Finance Minister Dario Durigan announced on Monday that Brazil is expected to record growing and recurring primary surpluses starting in 2027. Speaking at the BTG Pactual Macro Day event, Durigan outlined a fiscal agenda focused on meeting primary result goals, strengthening the current fiscal framework, and reducing the expansion of mandatory spending. He emphasized that bringing interest rates down to a civilized level is a primary economic challenge, as high costs currently burden the National Treasury, families, and businesses.

As part of the strategy to control spending, Durigan suggested that some social policies could transition from being mandatory rights to a system of flow control. He explained that this approach allows managers to optimize resources and ensure benefits reach those who meet the criteria, citing Bolsa Família as an example of a program that should serve as a gateway to the labor market. He clarified that the goal is to increase efficiency rather than reduce social policy.

Additional measures mentioned by the minister include a linear review of 10 percent of infra-constitutional tax benefits, which could represent approximately 20 billion reais. Durigan also expressed support for an administrative reform to combat excessive salaries in the public sector, limit indemnity payments, and review military retirement rules. He noted that improved public accounts would create space for investments in sectors such as biofuels, sustainable aviation fuel, and artificial intelligence to increase productivity.