Brazil's government is expected to announce on Friday an increase in spending blocks across ministries to stay within this year's spending cap, Finance Minister Dario Durigan said on Thursday.
The block currently stands at 1.6 billion reais ($320 million). The government has scheduled the presentation of its bimonthly revenue and expenditure report for 3 p.m. local time (1800 GMT) on Friday.
Durigan said in an interview with CNN Brasil that despite expanding the restrictions, it will not be necessary to trigger a spending freeze. "We are moving toward an increase in the block, so the government is cutting into its own flesh," the minister said.
He argued that federal revenues have come in line with estimates, but the government should continue on a gradual path toward fiscal consolidation. The government targets a primary surplus of 0.25% of GDP for this year.
