IFI governance

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Brazil angrily rejects IMF fiscal warning

14 February 2011

“The managing director of the IMF must have gone on vacation and some of the orthodox old men … got distracted and wrote this stupid thing”, said Brazil’s finance minister Guido Mantega about  a January IMF report on the country’s fiscal situation. The Fund described the deterioration of Brazil’s fiscal accounts as “particularly pronounced” and predicted it would end 2011 with an overall budget deficit of 3.1 per cent of GDP, far above the government’s 1.8 per cent forecast. Mantega said the IMF assessment was “totally wrong” and said that Brazil will meet its 2011 fiscal targets, despite admitting that it will just miss its public sector primary surplus target of 3.1 per cent of GDP for 2010.