On November 2, 2024, the Brazilian government announced that federal revenue reached R$ 247.9 billion in October, marking a real increase of 9.8% compared to the same month last year. This figure represents the highest revenue recorded for October since records began in 1995.
The historical revenue outcome reflects both tax measures implemented in 2023 and a surprisingly strong performance of the Brazilian economy. Key actions contributing to this rise include the taxation of exclusive funds and offshore accounts, changes in state incentive taxation, reinstatement of fuel taxes, limitations on precatory payments, and adjustments within the Administrative Council of Tax Appeals.
From January to October 2024, federal revenue totaled R$ 2.21 trillion, also reflecting a real growth of 9.8% compared to the same period in 2023. This amount is a record for the first ten months of the year.
The robust revenue performance is a critical element of the government's strategy to meet the fiscal target of eliminating the public deficit in 2024, as outlined in the Budgetary Guidelines Law. However, the fiscal framework allows for a tolerance margin, permitting a deficit of up to R$ 28.75 billion without violating the target.
Additionally, extraordinary expenses, such as R$ 38.6 billion allocated for flood relief in Rio Grande do Sul and R$ 1.35 billion granted to the judiciary and the National Council of the Public Ministry (CNMP), are excluded from the fiscal target calculations. Despite these justifiable measures, analysts have expressed concerns regarding the high number of exceptions, arguing that they undermine transparency and increase public debt pressure.