Temer-Meirelles depression knocks down taxes and fiscal target.
Data from the National Treasury shows that the shortfall in revenue projected by the government for this year could jeopardize the achievement of the fiscal target; from January to July, the federal government collected R$ 38,5 billion less in federal taxes and contributions than programmed in the Budget; in the calculations to arrive at the new fiscal target, which foresees a deficit of R$ 159 billion in 2017, the government estimated a revenue shortfall of R$ 50 billion for the entire year; the problem is that 80% of this total has already been confirmed by July.
247 - Data from the National Treasury shows that the shortfall in revenue projected by the government for this year could jeopardize the achievement of the fiscal target.
From January to July, the federal government collected R$ 38,5 billion less in federal taxes and contributions than planned in the budget. This figure was published by the newspaper Estado de S. Paulo.
In calculating the new fiscal target, which projects a deficit of R$ 159 billion in 2017, the government estimated a revenue shortfall of R$ 50 billion for the entire year. The problem is that 80% of that total has already been confirmed by July.
The situation becomes even more complicated with the growth of mandatory expenses, which the government cannot cut. From January to July, they increased by 6,2% compared to the same period in 2016. INSS (National Social Security Institute) expenses increased by R$ 19,5 billion, and the payroll by R$ 16,2 billion.
The R$20 billion margin for widening the deficit this year, which will be opened up by increasing the projected deficit – from R$139 billion to R$159 billion – has already been partially consumed by the loss of R$6 billion in revenue in July alone compared to what was planned.
Read the report from State St. Paul about the subject.