In a recent statement, Minister Fernando Haddad held former President Jair Bolsonaro accountable for the significant fiscal deficits observed during President Lula's third term. He highlighted that the budget approved by Bolsonaro for 2023 included a primary deficit of R$ 63 billion, along with an insufficient fiscal space that led to issues in funding increased social programs and outstanding legal debts. Consequently, Lula inherited a substantial financial deficit amounting to R$ 159 billion upon taking office in January 2023, equating to 1.5% of Brazil's GDP for the year.

While Haddad's assertions are supported by fiscal data, there is room for scrutiny regarding the selectivity in his portrayal of the economic legacies left by previous governments. He recognizes the negative impacts of fiscal decisions made under Bolsonaro but, as previously argued, overlooks the positive aspects instituted by the prior economic team led by Paulo Guedes. These measures included significant cuts to personnel spending, which had reached elevated levels during years of leftist governance, and efforts to stabilize the fiscal situation before Bolsonaro left office.

This ongoing debate over Brazil's economic management reflects broader national challenges in addressing systemic issues, including public debt and social expenditure. Observers are keenly watching how the Lula administration navigates fiscal responsibility amid rising public financial obligations, especially as pressures to increase social programs and other expenditures mount. The tension between managing inherited fiscal constraints while aiming for economic growth will likely be a defining characteristic of Lula's presidency moving forward.