Brazil is considering a flexible fiscal surplus target for this year as plummeting revenue and political turmoil hamper efforts to rebalance its public accounts, an official familiar with the matter told Reuters.
President Dilma Rousseff’s government was studying a bill to set a band for its primary surplus goal as well as a cap on public spending starting this year, said the official who asked for anonymity because he was not allowed to speak publicly.
The primary balance measures the surplus, or deficit, in government finances before servicing its debts.
The government is struggling to raise revenue to meet its primary surplus goal of 30.5 billion reais ($7.84 billion), or the equivalent of 0.5 percent of gross domestic product.
A political deadlock in Congress is delaying the approval of a new tax on financial transactions, which the government considers crucial to meet the goal.
Brazil Energy Insight 
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