Flávio Bolsonaro’s $40bn fiscal plan faces structural hurdles ahead of October 25 runoff
Flávio Bolsonaro has pledged to cut Brazil’s public spending by 1.5% of GDP, roughly $40bn, to address a debt-to-GDP ratio of 83%. While investors welcomed the pro-business stance, analysts warn that mandatory social security and wage costs consume 90% of the budget, leaving little room for maneuver without legislative changes. The plan faces political resistance from labor groups and questions over feasibility as the economy slows.
