Brazilian presidential candidate Flávio Bolsonaro plans to introduce a ceiling on public debt if he wins the country’s October presidential election, according to one of his economic advisers.
Adolfo Sachsida, a lawyer and economist who recently joined Bolsonaro’s campaign team, said the proposed measure would strengthen Brazil’s fiscal position and help control government spending.
Sachsida said that once public debt exceeds a set limit, automatic spending restrictions would be triggered to place the country’s finances on a more sustainable path.
Flávio Bolsonaro, the son of former far-right President Jair Bolsonaro, is challenging left-wing President Luiz Inácio Lula da Silva in the election. Recent opinion polls indicate a close race, with Lula holding only a narrow advantage in a potential runoff.
The economy is expected to be a major issue in the campaign. Inflation has eased and unemployment has fallen to record lows, but Bolsonaro’s camp has warned that another Lula administration could lead to an economic downturn.
Supporters of debt ceilings argue that they encourage fiscal discipline, while critics say such limits can restrict government spending during economic crises and potentially affect social welfare programmes.
Brazil’s public debt currently stands at about 82 percent of GDP, having risen significantly since Lula returned to office in 2023.
Brazil previously adopted a constitutional spending cap in 2016 under President Michel Temer. The rule limited federal spending growth to the previous year’s inflation rate, but it was later weakened and eventually replaced by Lula’s fiscal framework in 2023.
Lula’s government has focused heavily on poverty reduction and social welfare programmes, while his opponents have criticised the administration over relatively high interest rates and its economic policies.
The presidential contest is also unfolding amid tensions between Brazil and the United States. US President Donald Trump has expressed support for the Bolsonaro camp and previously imposed tariffs on some Brazilian exports while pressuring Brazil over the prosecution of Jair Bolsonaro.
The elder Bolsonaro, who lost the 2022 election to Lula, is currently serving a 27-year prison sentence after being convicted in connection with an alleged coup attempt. He endorsed Flávio as the right-wing Liberal Party’s presidential candidate in December.
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