Itaú, a major Brazilian bank, has expressed concerns regarding the government’s ability to meet its medium-term fiscal framework goals for 2026. The bank’s projections differ from the government’s, forecasting a fiscal deficit of 6.5% of GDP at the end of this year. Itaú anticipates this deficit will only slightly decrease to 5.9% of GDP in 2027. This assessment suggests potential challenges in achieving the fiscal consolidation targets set by the Brazilian government. The bank’s outlook raises questions about the sustainability of current fiscal policies and the need for potential adjustments. This divergence in projections could influence investor confidence and market expectations regarding Brazil’s economic trajectory. The warning highlights a growing debate over the realism of the government’s fiscal plans.