Brazil’s financial collapse is designed by the end of this contract, and general account analysis was revealed.
The estimated expenses of the federal government, which exists in allocating, must be practically zero by 2029, indicating a Severe budget crisis.
According to the data provided by the government in the project Budget Guidelines Law (LDO)The estimated expenses, currently representing 1.8 % of GDP, will suffer from a radical decrease in the coming years.
This decrease is the result of policies such as evaluating the minimum wage and linking spending on education and health.
Parliamentary amendments increase the scenario
The situation becomes more important in considering parliamentary amendments. Expectations indicate that since 2028, there will be not enough resources to cover these adjustments, which leads to the scenario of closing the general apparatus.
Experts indicate that this image is the result of an excessive solid budget, as 94 % of the expenses have been classified as mandatory. Relatively, in the United States, this percentage is 60 %.
Challenges to rule
The expected scenario raises serious questions about the country’s future power. Whatever the government that chose in 2026, it will face huge challenges to manage public accounts and implement effective policies.
Economists suggest that the solution to this “financial trap” involves solving the structural problem of plaster spending. Settings such as separation and dismantling of some expenses are indicated as possible ways, despite the political challenge.
Despite the severity of the situation, some analysts indicate that Brazil is still far from the insolvency framework, citing strong cash criticism of the treasure and constant demand for government bonds as positive factors.
However, the need for a consistent plan for public accounts is unanimously among experts.