Fiscal Result Should Approach Target Due to Hoarding, Says Haddad

Fernando Haddad, Minister of Finance, stated in an interview with CNN Brazil on Monday (11) that the 2025 primary result should be near the target due to the expected hoarding of resources for the year. The term ‘hoarding’ refers to the portion of the budget that, although authorized, is not effectively spent by government agencies. This can occur due to delays in bids, bureaucratic hurdles, technical impediments, or administrative contingencies. In practice, this money ‘hoards’ in Treasury accounts and improves the fiscal result, as it represents an expense that did not materialize. In 2024, for example, hoarding amounted to R$12.5 billion, aiding the government in achieving a primary result closer to the established target.