FISCAL DEFICIT AND GOVERNMENT PROPAGANDA EXPOSE A DEEP CONTRADICTION

BRAZIL IS SET TO CLOSE 2025 WITH A SEVERELY DETERIORATED FISCAL POSITION AND A SCENARIO THAT IS INCREASINGLY HARD TO DEFEND. THE PUBLIC SECTOR DEFICIT IS EXPECTED TO REACH R$ 83.8 BILLION FOR THE YEAR, A DIRECT RESULT OF GOVERNMENT SPENDING FAR OUTPACING REVENUE. IN NOVEMBER ALONE, THE DEFICIT TOTALLED R$ 20.2 BILLION, CONFIRMING THAT THE COUNTRY WILL END THE YEAR IN THE RED, DESPITE OFFICIAL RHETORIC ABOUT MEETING A FISCAL BALANCE TARGET.

ON ITS OWN, THIS FIGURE WOULD ALREADY BE A SERIOUS WARNING SIGN. WHAT MAKES THE SITUATION EVEN MORE CONTROVERSIAL, HOWEVER, IS HOW PUBLIC MONEY IS BEING ALLOCATED AT A TIME OF CLEAR BUDGETARY STRESS. DURING THE SAME PERIOD IN WHICH THE DEFICIT DEEPENED, THE PRESIDENTIAL COMMUNICATIONS SECRETARIAT SPENT R$ 69 MILLION ON DIGITAL ADVERTISING AND PAYMENTS TO SOME OF BRAZIL’S LARGEST INFLUENCERS.

THIS TYPE OF EXPENDITURE HAS DRAWN STRONG CRITICISM. IN PRACTICE, IT GOES FAR BEYOND BASIC INSTITUTIONAL COMMUNICATION. BY FINANCING INFLUENCERS WITH MASSIVE REACH ON SOCIAL MEDIA, THE GOVERNMENT CREATES A STRUCTURE WHERE CRITICISM FADES AND NEGATIVE NEWS IS AVOIDED. PUBLIC FUNDS ARE USED NOT TO INFORM, BUT TO SHAPE NARRATIVES, PROMOTE A POSITIVE IMAGE AND REDUCE SPACE FOR INDEPENDENT SCRUTINY.

THE CONTRAST IS STRIKING. WHILE THE GOVERNMENT CLAIMS A LACK OF RESOURCES FOR INVESTMENT, INFRASTRUCTURE AND ESSENTIAL PUBLIC SERVICES, MILLIONS OF REAIS ARE DIRECTED TOWARD A COMMUNICATION STRATEGY THAT INCREASINGLY RESEMBLES POLITICAL MARKETING. IN A COUNTRY STRUGGLING WITH A LARGE FISCAL DEFICIT AND RISING DEBT PRESSURES, THIS SET OF PRIORITIES REVEALS A CLEAR POLITICAL CHOICE.

FROM AN ECONOMIC PERSPECTIVE, THE CONSEQUENCES ARE DIRECT. A PERSISTENT DEFICIT RESTRICTS PUBLIC INVESTMENT, UNDERMINES CONFIDENCE, PUTS PRESSURE ON INTEREST RATES AND WEIGHS ON ECONOMIC GROWTH. AT THE SAME TIME, THE PERCEPTION THAT PUBLIC MONEY IS BEING USED INEFFICIENTLY AND FOR SELF PROMOTION DAMAGES THE CREDIBILITY OF FISCAL POLICY AND GOVERNMENT GOVERNANCE AS A WHOLE.

THIS SITUATION REINFORCES A BROADER CRITIQUE OF CURRENT ECONOMIC MANAGEMENT. CLAIMS OF FISCAL RESPONSIBILITY RING HOLLOW WHEN, IN PRACTICE, THE GOVERNMENT MAINTAINS QUESTIONABLE EXPENDITURES AND EXPANDS SPENDING THAT DELIVERS NO CLEAR ECONOMIC OR SOCIAL RETURN. ONCE AGAIN, THE COST IS PASSED ON TO TAXPAYERS.

AT A TIME WHEN BRAZIL NEEDS DISCIPLINE, TRANSPARENCY AND A FOCUS ON REAL PRIORITIES, THE USE OF PUBLIC FUNDS TO FINANCE DIGITAL INFLUENCE AND CONTROL THE FLOW OF INFORMATION ON SOCIAL MEDIA STANDS AS A SYMBOL OF THE GAP BETWEEN DISCOURSE AND REALITY. THE R$ 83.8 BILLION DEFICIT IS NOT JUST A NUMBER. IT IS A PORTRAIT OF A GOVERNMENT THAT SPENDS POORLY, COLLECTS WITH DIFFICULTY AND STILL CHOOSES PROPAGANDA OVER FISCAL ADJUSTMENT.