Planning and Budget Minister Bruno Moretti said on Thursday (27) that Brazil's 2027 budget proposal forecasts a primary surplus even when spending currently excluded from the fiscal target calculation is counted. He made the statement in an interview with GloboNews, according to Folha de S.Paulo and Reuters.

On Monday (31), the government will deliver the 2027 annual budget bill, known as the PLOA, to Congress. It is the first budget of the next presidential term. The proposed fiscal target is a surplus of R$ 73.2 billion, equivalent to 0.5% of GDP.

Today, part of federal spending is left out of the target calculation, including a share of payments of precatórios, court-ordered debts owed by the government. In the budget guidelines bill sent to Congress in April, the Lula administration's economic team had forecast the exclusion of R$ 65.7 billion in expenses, covering part of judicial sentences and investments tied to defense, health and education.

"Counting all expenses, our horizon for next year is to deliver a positive primary result," Moretti told GloboNews.

According to Reuters, the minister said the bill will foresee a decline in federal spending as a share of GDP. "Even with the so-called discounts to the target, our real expectation is that next year we will have more revenue than spending," he said.

Moretti also said the government will not need to send Congress bills to raise revenue in order to meet the fiscal target, a break from the approach taken in recent years.

The 2027 budget reaches the legislature on Monday. After delivery, the text goes to the joint budget committee and then to a vote on the floor of the National Congress.