{"id":94300,"date":"2025-05-23T16:17:11","date_gmt":"2025-05-23T19:17:11","guid":{"rendered":"https:\/\/murray.adv.br\/?p=94300"},"modified":"2025-05-23T16:17:11","modified_gmt":"2025-05-23T19:17:11","slug":"economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/","title":{"rendered":"Economists back budget cut, warn credit may suffer under new tax hike"},"content":{"rendered":"<section class=\"content--header\">\n<div class=\"row content-head non-featured \">\n<div class=\"title\">\n<h6 class=\"content-head__title\" style=\"text-align: center\"><em>While the R$31.4 billion budget freeze boosts fiscal credibility, experts say the higher financial transaction tax could deter credit and long-term savings<\/em><\/h6>\n<\/div>\n<\/div>\n<div class=\"content__signa-share\">\n<div class=\"content__signature\">\n<div class=\"content-publication-data\">\n<div class=\"content-publication-data__text\">\n<div class=\"content-publication-data__from\"><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"content-publication-data__updated\">05\/23\/2025\n<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content__share-bar-container\">\n<div class=\"content__share-bar\"><\/div>\n<\/div>\n<\/div>\n<\/section>\n<div id=\"mc-article-body\" class=\"mc-article-body \">\n<article>\n<div class=\"no-paywall\">\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"34\" data-block-id=\"1\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Most economists welcomed the government\u2019s decision to freeze R$31.4 billion in expenditures. Still, they expressed concern that the increase in the IOF\u2014Brazil\u2019s Tax on Financial Transactions\u2014could have negative effects by making credit more expensive.<\/p>\n<\/div>\n<div class=\"wall protected-content\">\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"56\" data-block-id=\"3\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The figures released in the government\u2019s Bimonthly Revenue and Expenditure Report show that controlling mandatory spending remains a major challenge, even after the fiscal package signed into law by President Lula at the end of 2024, said Manoel Pires, associate researcher and coordinator at the Fiscal Policy Observatory of FGV\u2019s Brazilian Institute of Economics (FGV Ibre).<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"71\" data-block-id=\"4\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">\u201cWhen presenting the report, the government pointed to an increase of more than R$30 billion in mandatory spending. That\u2019s a lot. There\u2019s more spending on pensions, the BPC [a social benefit for low-income elderly and disabled individuals], and subsidies. And we already have a fiscal framework that allows real spending growth of 2.5% per year,\u201d said Mr. Pires. \u201cMandatory spending rising far above that obviously puts pressure on other government expenditures.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"63\" data-block-id=\"5\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">According to Mr. Pires, the freeze improves the government\u2019s chances of hitting its primary result target for the year: a zero balance, with a tolerance range of \u00b10.25% of GDP. \u201cWhat the government did was a relevant early-year fiscal adjustment to raise the likelihood of meeting the target and, consequently, reduce the market pressure that usually builds when targets are missed,\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"48\" data-block-id=\"6\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Regarding the IOF increase, Mr. Pires acknowledged that while it helps raise revenue, it also creates negative side effects. \u201cIt brings in more revenue and raises the chances of meeting the target, but the downside is the cost to credit operations, which are likely to feel the impact.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"36\" data-block-id=\"7\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Economically, raising the IOF is not a sound measure\u2014ideally, this type of tax wouldn\u2019t exist, as is the case in many other countries. But fiscally, it supports the government\u2019s efforts to meet its target, he added.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"54\" data-block-id=\"8\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Carlos Kawall, founding partner of Oriz Partners, said the R$31.4 billion spending freeze was more substantial than expected. However, he argued it does not amount to a \u201cgenuine fiscal effort\u201d because it came alongside lower revenue projections and higher estimates for mandatory expenditures, partly accommodated through credit openings allowed under the new fiscal framework.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"34\" data-block-id=\"9\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">\u201cLet\u2019s be honest, they never really promised anything. At one point, it seemed like they might surprise us by delivering something. But in reality, expectations were low\u2014and they met those expectations,\u201d Mr. Kawall said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"74\" data-block-id=\"10\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The government revised down its revenue projection for the 2025 budget, with net revenues falling R$41.7 billion. This drop mainly came from so-called \u201cadministered revenues.\u201d During the report\u2019s presentation, technical staff said that the revision included eliminating projected revenues from CARF (Administrative Council of Tax Appeals) settlements and scrapping expected gains from a proposed increase in the Social Contribution on Net Profit (CSLL) for banks, which had been planned to offset payroll tax relief.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"43\" data-block-id=\"11\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The CSLL hike was proposed and included in the 2025 budget bill, but has not been approved. As for the administrative tax appeals court CARF revenues, they fell short of expectations last year, and there was skepticism they would meet projections this year.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"65\" data-block-id=\"13\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">On the spending side, Mr. Kawall noted an increase of R$23.2 billion in primary expenditures subject to the fiscal cap. Part of that was accommodated through a R$12.4 billion extraordinary credit, tied to the difference between projected and actual inflation for 2024, as allowed by the fiscal framework. This made room for more mandatory spending, but still required an additional R$10.6 billion to be blocked.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"76\" data-block-id=\"14\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Mr. Kawall believes the IOF hike will help with revenue and the 2025 budget, as it is immediately collected and not shared with states or municipalities. However, it will likely \u201cgenerate market noise and come at a cost.\u201d One key concern is private pensions: a 5% tax on contributions above R$50,000 to VGBL plans could discourage savings. In some foreign exchange transactions, a 3.5% IOF rate \u201cis also excessive and could be seen as currency control.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"39\" data-block-id=\"15\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Economist Rafaela Vit\u00f3ria of Inter Bank said that the spending freeze, along with unspent funds from prior budgets, should help meet the 2025 fiscal target. She noted that the R$31.4 billion freeze exceeded market expectations of around R$15 billion.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"39\" data-block-id=\"16\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">However, she also highlighted a significant upward revision in spending\u2014an additional R$25.8 billion\u2014mostly in pensions and BPC payments. \u201cThe latest report suggests total spending will grow by more than 4% above inflation in 2025, likely exceeding 19% of GDP.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"57\" data-block-id=\"17\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Ms. Vit\u00f3ria acknowledged greater transparency in accounting for mandatory spending, but said managing the growth of such expenditures remains a challenge. \u201cOn the revenue side, the updated projections were realistic, which is a positive, but the announcement of new taxes like the IOF hike shows the government is still leaning on revenue increases to cover rising expenses.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"69\" data-block-id=\"18\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Economist Jo\u00e3o Leme of Tend\u00eancias Consultoria said next year will be the real test, as the electoral calendar will pressure spending. \u201cThe main concern is whether the new fiscal framework can hold in 2026, when election-year incentives could push spending higher amid slower economic growth, inflation still above target, high interest rates, and structural issues in spending trends that could even lead to a complete squeeze on discretionary spending.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"58\" data-block-id=\"19\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Mr. Leme said the government\u2019s announcement was positive, as it showed a genuine concern with meeting the fiscal target, even if only at the lower end. He noted that revised assumptions for key variables\u2014like average key interest rate Selic, inflation (IPCA), and Brent crude oil prices\u2014brought the government\u2019s numbers closer to market consensus, which enhances the budget debate.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"71\" data-block-id=\"20\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Economist Italo Faviano of consultancy Buysidebrazil said the report signals a shift in how the government is handling revenue and spending, indicating a concern for a healthier fiscal path. \u201cIt was expected that instead of large freezes late in the year, we\u2019d see smaller, more consistent freezes throughout. But what we got was R$30 billion right out of the gate, which was what was needed for the year as a whole.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"46\" data-block-id=\"21\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Sergio Vale, chief economist at MB Associados, said a more ambitious administration might only come in 2027 to seriously reform expenditures. He acknowledged that the government anticipated criticism about last year\u2019s overestimated revenues. \u201cThe effort is significant, but it\u2019s at the lower end of what\u2019s needed.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"66\" data-block-id=\"22\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">\u201cWe\u2019re still talking about another year of a high deficit\u2014over R$70 billion. Combined with high interest rates, this will push public debt close to 80% of GDP,\u201d Mr. Vale said. He criticized the IOF hike as \u201ca bad tax, typically used in emergencies.\u201d \u201cWe\u2019ve been in a fiscal emergency since 2022, and the core issue is the government\u2019s failure to create a truly durable fiscal regime.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"72\" data-block-id=\"23\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Tiago Sbardelotto, economist at XP, said the report exceeded market expectations with a larger-than-expected freeze and signaled a shift in the government\u2019s approach. \u201cThe report was based on more realistic assumptions,\u201d he said. Realistic budgeting alone doesn\u2019t ensure fiscal sustainability, but it\u2019s a prerequisite, he added. The biggest surprise, according to Mr. Sbardelotto, was the R$20.7 billion in spending containment, while the R$10.6 billion in blocked funds was in line with expectations.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"53\" data-block-id=\"24\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">On the spending side, Mr. Sbardelotto noted a significant revision in pension spending. \u201cThey seem to have factored in a partial reduction in the backlog,\u201d he said. A recent Valor report showed that the Social Security waiting list nearly doubled in one year. However, he said, BPC spending projections still seem \u201csomewhat disconnected.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"59\" data-block-id=\"25\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Santander economist \u00cdtalo Franca said the report offered positive signs for meeting the 2025 primary result target. Since the government raised the spending cap by R$12.4 billion, due to the difference between projected and actual inflation, Mr. Franca estimated the \u201cnet fiscal effort\u201d at R$18.9 billion. That\u2019s above market expectations and even above Santander\u2019s upper-bound scenario of R$15 billion.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"31\" data-block-id=\"26\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Given this, he said, achieving the 2025 target range looks feasible. On the spending side, pension benefits were in line with projections, even assuming a partial reduction in the claims backlog.<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">*By Ana\u00efs Fernandes,\u00a0Mars\u00edlea Gombata,\u00a0Marta Watanabe,\u00a0Michael Esquer\u00a0\u00a0and\u00a0Alex Braga Jorge\u00a0\u00a0\u2014 S\u00e3o Paulo<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Source: Valor International<\/p>\n<p>https:\/\/valorinternational.globo.com<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>While the R$31.4 billion budget freeze boosts fiscal credibility, experts say the higher financial transaction tax could deter credit and long-term savings &nbsp; &nbsp; &nbsp; 05\/23\/2025 Most economists welcomed the government\u2019s decision to freeze R$31.4 billion in expenditures. Still, they expressed concern that the increase in the IOF\u2014Brazil\u2019s Tax on Financial Transactions\u2014could have negative effects [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26127],"class_list":["post-94300","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-economists-back-budget-cut-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Economists back budget cut, warn credit may suffer under new tax hike - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economists back budget cut, warn credit may suffer under new tax hike - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"While the R$31.4 billion budget freeze boosts fiscal credibility, experts say the higher financial transaction tax could deter credit and long-term savings &nbsp; &nbsp; &nbsp; 05\/23\/2025 Most economists welcomed the government\u2019s decision to freeze R$31.4 billion in expenditures. Still, they expressed concern that the increase in the IOF\u2014Brazil\u2019s Tax on Financial Transactions\u2014could have negative effects [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/\" \/>\n<meta property=\"og:site_name\" content=\"Murray Advogados\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-23T19:17:11+00:00\" \/>\n<meta name=\"author\" content=\"Gelcy Bueno\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gelcy Bueno\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/\"},\"author\":{\"name\":\"Gelcy Bueno\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"headline\":\"Economists back budget cut, warn credit may suffer under new tax hike\",\"datePublished\":\"2025-05-23T19:17:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/\"},\"wordCount\":1395,\"keywords\":[\"Economists back budget cut\"],\"articleSection\":[\"Murray News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/\",\"url\":\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/\",\"name\":\"Economists back budget cut, warn credit may suffer under new tax hike - Murray Advogados\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#website\"},\"datePublished\":\"2025-05-23T19:17:11+00:00\",\"author\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"breadcrumb\":{\"@id\":\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"In\u00edcio\",\"item\":\"https:\/\/murray.adv.br\/en\/home\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Economists back budget cut, warn credit may suffer under new tax hike\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/murray.adv.br\/en\/#website\",\"url\":\"https:\/\/murray.adv.br\/en\/\",\"name\":\"Murray Advogados\",\"description\":\"PLG International Lawyers\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/murray.adv.br\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\",\"name\":\"Gelcy Bueno\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"caption\":\"Gelcy Bueno\"},\"url\":\"https:\/\/murray.adv.br\/en\/author\/news\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Economists back budget cut, warn credit may suffer under new tax hike - Murray Advogados","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/murray.adv.br\/en\/economists-back-budget-cut-warn-credit-may-suffer-under-new-tax-hike\/","og_locale":"en_US","og_type":"article","og_title":"Economists back budget cut, warn credit may suffer under new tax hike - Murray Advogados","og_description":"While the R$31.4 billion budget freeze boosts fiscal credibility, experts say the higher financial transaction tax could deter credit and long-term savings &nbsp; &nbsp; &nbsp; 05\/23\/2025 Most economists welcomed the government\u2019s decision to freeze R$31.4 billion in expenditures. 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