Brazil's Finance Minister Fernando Haddad on Thursday sought to calm the market following a meltdown over the announcement of a reform that would increase income tax exemptions, emphasizing that the measures would be fiscally neutral and take effect only in 2026 after Congress approval.

Brazil Finance Minister Fernando Haddad unveiled a long-sought plan to cut 70 billion reais ($11.8 billion) from public spending through 2026 as investors’ fiscal concerns sink assets from the currency to stocks.

Brazil Finance Minister Fernando Haddad has unveiled a long-sought plan to cut 70 billion reais ($11.8 billion) from public spending through 2026 as investors’ fiscal concerns sink assets from the currency to stocks.

Brazil's government on Thursday detailed spending cuts aimed at achieving more than 70 billion reais ($11.8 billion) in savings over the next two years to support its new fiscal framework, but investors remained anxious,