The recent surge in Brazil's public debt has brought into question the sustainability of the fiscal framework designed by Minister Fernando Haddad. This system, aimed at controlling the country's accounts, sets spending limits and a minimum surplus target between revenues and expenditures. However, the framework has already faced skepticism from economists, who argue that its effectiveness is hindered by various exemptions and policies that circumvent its restrictions, such as funding aimed at boosting subsidized credit.

The fiscal framework allows for an increase in expenditures by up to 2.5% above inflation each year, with the specific limit calculated based on 70% of the previous year's real revenue variation. Amid increasing debt levels, Haddad has acknowledged that adjustments to these parameters may be necessary in the near future to ensure that spending grows at a slower pace. However, many economists believe that simply recalibrating these limits will not be enough, and that more fundamental changes will need to be made regarding mandatory spending structures.

This situation underscores the broader debates in Brazil about fiscal responsibility and economic growth, as policymakers face the dual challenge of managing public finances while also promoting economic expansion. The potential necessity for amendments to the fiscal framework points to the evolving nature of Brazil's economic policies and the ongoing discussions among economic experts regarding the best path forward for sustainable growth and debt management.