Overview
- Speaking at a Chamber of Deputies seminar marking two years of the rule, Motta argued the framework replaced an investment‑stifling spending cap.
- He called the model more rational than the former ceiling, saying it restores predictability for funding health, education and infrastructure.
- Motta highlighted the tolerance band on the primary balance target, which allows adjustments tied to economic performance.
- Market analysts continue to flag slow fiscal adjustment and reliance on revenue measures, with the IIF estimating public debt at about 89% of GDP.
- Heightened friction between Congress and the Presidency, including recent contentious votes, raises uncertainty over implementing the fiscal rule.