The Brazilian government’s spending cuts package is nearly finalized and will be announced soon, pending feedback from the Defense Ministry, Finance Minister Fernando Haddad revealed in an interview with *Times Brasil/CNBC* on Sunday.
“The package has been agreed upon with President Luiz Inácio Lula da Silva. We’ll announce it shortly, as we’re only waiting for a response from one ministry—the Ministry of Defense,” Haddad stated.
He added, “We’ve had productive meetings with the minister, José Múcio, and the military commanders.”
Haddad did not disclose the total amount of spending reductions in the fiscal measures, noting only that the package is designed to meet the government’s needs for balanced economic growth.
He expressed optimism that fiscal adjustments could eventually lead to interest rate cuts by curbing inflation, following recent market expectations that prompted the central bank to speed up its monetary tightening.
The government has pledged to unveil measures to control spending and ensure fiscal framework sustainability, previously indicating the package would be announced after the second round of municipal elections in late October.
The delay in the announcement has caused market anxiety, increasing pressure on Brazilian assets.
