Brazil’s Zero-Deficit Goal Under Heavy Fire From Lula’s Allies

President Luiz Inacio Lula da Silva’s government is locked in a tug-of-war over Brazil’s primary fiscal target, as the leftist leader’s political allies ramp up pressure on Finance Minister Fernando Haddad to abandon the zero-deficit pledge he made to calm fears about runaway spending.

Haddad, who met with Lula on Wednesday to discuss the fiscal situation, is still fighting to maintain the zero target for the primary deficit, which excludes interest payments. He set such a goal in the 2024 budget plan unveiled in August.

Brazil President Luiz Inacio Lula da Silva

Photographer: Andressa Anholete/Bloomberg

But after Lula cast doubt on the goal last week, political allies ...