Brazil candidates focus fiscal plans on voter — friendly measures before runoff

Campaigns focus on politically safe spending cuts rather than structural reforms Mandatory spending, shrinking discretionary budget constrain fiscal adjustment Economists say the real fiscal plans will only emerge after the election By Marcela Ayres BRASILIA, Oct 15 (Reuters) — As Brazil's presidential runoff campaign enters its final stretch, both candidates are focusing plans for fiscal adjustments on politically palatable measures, reinforcing economists' views that strategies to curb the country's rising debt burden will only come to light after the election. The country's gross debt has risen more than 10 percentage points during President Luiz Inacio Lula da Silva's current term, reaching 82.9% of gross domestic product (GDP), as the leftist incumbent seeks reelection after unexpectedly trailing Senator Flavio Bolsonaro in the first round earlier this month. Right-wing Bolsonaro entered the race promising a faster fiscal adjustment, targeting a 1.5% of GDP improvement in the primary balance within 18 months to trigger a confidence shock and lower borrowing costs. Long-term interest rates have fallen sharply since Bolsonaro's first-round victory, reflecting investor optimism a