Brazil's Finance Ministry executive secretary Dario Durigan said the government remains committed to meeting its fiscal targets for 2026 [1].
These statements come as the government seeks to reconcile official projections with market estimates of the national deficit. Stability in these accounts is critical for investor confidence and the management of the country's public debt during an election year.
Durigan addressed the strategy in interviews conducted between July 24 and July 27, and said the administration is not pursuing a high-risk approach to spending. "Não estamos adotando uma estratégia 'all in' na política fiscal em ano eleitoral," Durigan said [2].
The official pushed back against claims that public spending is the primary driver of the current debt levels. He said that government spending has not been the explanation for public indebtedness since 2024 [3]. Instead, Durigan attributed the increase in debt to the high cost of interest rates.
While acknowledging that the public debt remains high, Durigan said the situation is under control. He noted that Brazil's debt levels are lower than those of several developed economies [4].
The Finance Ministry continues to emphasize the need for fiscal adjustment to maintain economic stability. Durigan said the government's focus remains on organized public accounts to ensure the 2026 goals are achieved [1].
“"Não estamos adotando uma estratégia 'all in' na política fiscal em ano eleitoral"”
By attributing debt growth to interest rates rather than spending, the Finance Ministry is shifting the narrative of fiscal responsibility away from budgetary discipline and toward monetary policy. This positioning allows the government to defend its spending levels while pressuring the central bank or market conditions to lower the cost of borrowing to meet the 2026 targets.
