Brazil's Government Faces Fiscal Collapse by 2027 Amid 7% Bond Rates and Excluded Court-Ordered Payments

The Brazilian government, led by President Lula, is facing a potential fiscal collapse by 2027 due to unsustainable spending practices. Reports indicate that the administration is selling public bonds at real interest rates exceeding 7% annually, reminiscent of the crisis that plagued the country in 2015. Furthermore, the government has excluded court-ordered payments, known as precatórios, from its spending review, raising concerns about its ability to fund essential services such as health and education. Analysts warn that this could lead to a shortage of funds necessary to support public sector operations and investments in the upcoming years, particularly as the country approaches the next presidential term.