Government announces fiscal adjustment in which spending rises to balance revenue, which also rises

This week the government unveiled a fiscal adjustment that, according to the Treasury (Fazenda), "changes nothing, but is not irrelevant". The economic team decided to adopt the phrase as its official target.

The plan provides for cutting spending as soon as there is consensus on what counts as spending. A working group of 38 ministries has been set up to define the concept, with a deadline of the next reincarnation.

"The fiscal anchor remains firm. We have only changed the sea", explained an adviser who asked not to be identified. Another pointed out that the patch-up is temporary and, like everything temporary in Brasília, will last decades.

To offset the new spending, the Treasury is studying a tax on tax collection, so that the tax would apply to the tax itself. An economist who has already given up called the measure "the only investment with a guaranteed return".

Taxpayers were consulted and said they will pay. The bill for the imbalance arrives by post, in three interest-free instalments, with interest.