Lula says rising debt poses no threat as Brazil eyes primary surplus

During a broadcast of Jornal Nacional, President Luiz Inacio Lula da Silva asserted that Brazil’s public-debt path is not a cause for concern, pointing to an anticipated primary surplus for the year. He noted that the debt-to-GDP ratio has risen to 81.9% as of June, a jump of more than ten percentage points since his term began, but attributed part of this increase to the current 14% benchmark interest rate. Lula highlighted that fiscal conditions have improved since 2023 and that continued economic growth should further reduce the debt share. He also responded to allegations involving his son, Fabio Luis Lula da Silva, who is under investigation for allegedly aiding a lobbyist in health-ministry dealings, stating the claims remain speculative and that any proven misconduct would be prosecuted like any other citizen’s. Lula emphasized accountability while denying any intention to shield his son.