Deficit outlook for 2015 could be revised to $29.77bn
t Budget Committee of Congress 
Deputy Hugo Leal, the rapporteur on the bill amending the 2015 Budget Act, submitted his report to the t Budget Committee of Congress on Thursday (Oct. 29).
In the report, Leal recommended that the primary fiscal balance target for this year be relaxed to accommodate potentially lower-than-expected revenue from concessions and authorizations for hydroelectric plant auctions, down from a $2,925 billion estimate. His proposal goes on to provide for costs of up to $14 billion this year in connection with liabilities and pending transfers of money owed by the government to state banks.
In addition to the existing $13.1 billion revenue writedown in the original bill submitted by the government, the rapporteur has ed for a further $16.7 billion in lost revenue or government expenditures. This would raise the deficit outlook for this year to $29.8 billion (1.99% of the GDP).
This amount may not be fulfilled in case the power plant auctions do take place. Moreover, the government is negotiating with the Federal Court of s (TCU) for permission to settle its debt to state banks in installments. Leal explained that he set a maximum amount as a guideline for economic forecasts.
Deputy Hugo Leal
“We understand that uncertainties regarding the amounts and conditions for certain expenditures to take place in 2015—which are pending with the Court of s—make an estimation very difficult. But leaving our [primary fiscal target] floor open would not help us restore the required confidence to overcome the adverse circumstances,” the rapporteur pointed out.
The report is expected to be voted on by the t Budget Committee next Tuesday (Nov. 3). The budget bill will then be reported back for floor debate and vote in Congress.
*With additional reporting by Wellton Máximo.
Translated by Mayra Borges
Fonte: Deficit outlook for 2015 could be revised to $29.77bn
