Business · Economy · 5 hrs ago
Lula adviser says Brazil’s fiscal outlook is less dramatic than critics claim
José Sergio Gabrielli, who coordinated Lula’s campaign programme, says Brazil’s fiscal situation is less dramatic than some critics argue.
He says the president’s new term should still include measures to reduce the deficit.
Gabrielli lists ideas to raise revenue and cut costs, including reviewing tax incentives and contracts nearing renewal.
He also backs economist André Lara Resende’s proposal to limit the benchmark interest rate, currently 13.75%.
Gabrielli argues that high rates increase debt costs; Brazil’s gross debt is 82.9% of its economy, the highest level since 2021.
Finance Minister Dario Durigan said the interest-rate proposal was not on Lula’s agenda, though some government members reportedly wanted to present it to the president.
The debate matters because it raises questions about how Brazil should balance debt reduction, public spending and interest costs.
Economist José Sergio Gabrielli said Brazil’s fiscal situation is less dramatic than advocates of fiscal adjustment claim.
Gabrielli said the next Lula government should still consider measures to reduce the deficit.
He proposed ten initiatives to increase revenue, including reviewing tax incentives and contracts nearing expiry.
He praised economist André Lara Resende’s proposal to limit interest rates, saying it deserves special attention.
Brazil’s gross debt is 82.9% of gross domestic product, its highest level since 2021, according to the article.
- Who
- José Sergio Gabrielli, an economist who coordinated President Luiz Inácio Lula da Silva’s government program.
- What
- Gabrielli said Brazil’s fiscal outlook is less dramatic than critics claim and outlined possible revenue measures. He also praised André Lara Resende’s proposal to limit interest rates.
- When
- Gabrielli’s article was published on Monday, November 2, 2026.
- Where
- Brazil.
- Why
- Gabrielli argues that high interest rates increase debt costs and that revenue measures could help improve the fiscal position.
Gabrielli and supporters of Lara Resende’s proposal
Advocates of fiscal adjustment
Fiscal outlook
Gabrielli and supporters of Lara Resende’s proposal
Gabrielli says Brazil’s fiscal situation is less dramatic than adjustment advocates claim.
Advocates of fiscal adjustment
They argue for fiscal adjustment, though their specific views are not detailed in the article.
Interest rates
Gabrielli and supporters of Lara Resende’s proposal
Gabrielli praised Lara Resende’s proposal to limit interest rates and said it deserves special attention.
Advocates of fiscal adjustment
The article reports criticism and debate over the proposal but does not give a specific opposing argument.
André Lara Resende’s article proposing an interest-rate limit was published.
Finance Minister Dario Durigan denied that Lara Resende’s interest-rate proposal was on the president’s radar.
Gabrielli published an article discussing Brazil’s fiscal outlook, revenue measures and Lara Resende’s proposal.
- Gross debt
- 82.9% of GDP, the highest level since 2021
- Selic rate
- 13.75% a year
- Revenue proposals
- Gabrielli outlined ten initiatives to improve revenue
- Next agenda
- Gabrielli said 2027 should focus on diversifying sources of funding for social security
- Article date
- November 2, 2026
What people are saying
The agenda for 2027 is to diversify sources of funding
We do not propose a new minimum age, reduced indexation or an eligibility barrier as a fiscal shortcut.
deserves special attention
Faria Lima wants to set the agenda for the president-elect’s program, even though it bet on his opponent.