So soon?
Finance Minister Nelson Barbosa (the guy with the crystal balls) was quoted in today’s press that the administration is (again) considering a reduction of the “primary surplus” target to allow for a deficit of 1% of GDP.
Since I had mentioned in a previous post that when the reduction from 0.7% to 0.5% was discussed it seemed like the administration had no intention of even reaching the 0.5% target.
Dilma had already suggested a “band” of between 0.5% and 0%. Now it seems that after consulting his crystal balls, the Finance Minister has concluded that even 0% is not such a good idea. So, he has proposed a deficittarget of 1%.
Because of Carnaval, the real first work day of 2016 occurred just two days ago – Monday, the 15th of February, it’s not exactly a good sign that the administration is already reducing the fiscal target.
It probably means further reductions later in the year! (At least that has been the experience thus far.)
Looks like we might be in for a rough ride this year!
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