Brazil's government to end 2024 within fiscal target tolerance band, finance minister says

BRASILIA - Brazil Finance Minister Fernando Haddad said on Friday that the government should close this year within the tolerance band of its fiscal target if Congress approves the compensation for payroll tax waivers.

Central bank data released on Friday showed that the central government posted a primary deficit of 8.6 billion reais in July and a deficit of 269 billion reais over the past 12 months. Government members have stressed that fiscal results in the second half of the year will be better than in the first, which saw the anticipation of significant expenditures, including court-ordered payments.

The minister assessed that the labor market is overheated, and now is the time to adjust social programs.

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