Brent's drop does not generate revenue frustration in the budget, says Moretti

The Minister of Planning and Budget, Bruno Moretti, stated this Tuesday (30) that the drop observed in the price of Brent oil does not affect the government from the point of view of revenue frustration.

The speech took place at a press conference announcing the gradual end of fuel subsidies by the government.

The price of Brent - used as a reference in most of the world - was trading at around US$72 before the outbreak of conflicts in the Middle East at the end of February. At peak times, the value has exceeded US$100 in recent months.

Brent ended this Tuesday trading at US$72.95 a barrel, down almost 30% in the quarter.

According to Moretti, the government made "contained" and "moderate" projections of the appropriation of extraordinary revenue, meaning that the government will not have major bumps in the projection of this revenue for the next bimonthly report of primary income and expenses.

"The reduction in Brent does not affect us from the point of view of revenue frustration, because we had already made careful projections, of the export tax for a shorter period, of the tax revenue also for a very short period", explained the minister.

The minister answered questions from journalists on the topic, which were generated because in the last bimonthly assessment report, the government had partially incorporated possible revenue gains due to the rise in oil prices.

If the government observes a frustration in this revenue projection, it must activate the budget contingency mechanism, to balance revenues and expenses and meet the fiscal target.

Source: CNN