Brazil government eliminates spending freeze to meet 2025 fiscal target

BRASILIA, July 22 (Reuters) - Brazil's government on Tuesday fully eliminated the spending freeze previously deemed necessary to meet this year's fiscal target, after having frozen 20.7 billion reais in May, according to its latest bimonthly revenue and expenditure.

In the report, the Finance and Planning Ministries slightly raised to 10.7 billion reais, from 10.6 billion previously, the spending block required to comply with the cap on expenditure growth set by the new fiscal framework approved under leftist President Luiz Inacio Lula da Silva's administration in 2023.