There are “two details” missing for the announcement of spending cuts

by Andrea
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Finance Minister Fernando Haddad said that there are only “two details” left for the Lula government to announce the package of measures to cut spending. The minister did not elaborate on the details still under discussion.

Furthermore, according to Haddad, the government will forward a Proposed Amendment to the Constitution (PEC) and a complementary bill (PLP) to Congress with the measures.

According to the minister, “it doesn’t make sense to have two” PECs, as initially suggested.

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The statements were given by Haddad to journalists in the early evening of Wednesday (6), outside the Ministry of Finance building.

The minister also said that he will have a meeting with President Lula (PT) on Thursday morning (7) to agree on the details of the proposal.

“Once these details are resolved, the question is how the president will decide to dialogue with both Houses [Senado e Câmara]but for our part, I want to believe that by the end of tomorrow morning, we will have these issues decided”, he stated.

In addition to Haddad, ministers Rui Costa, from the Civil House; Simone Tebet, from Planning and Budget; and Esther Dweck, from Management and Innovation in Public Services.

According to Haddad, only after the meeting will he be informed about how the announcement will be made.

Impacts

Asked about the impacts of the package, Haddad said that the objective of the proposal is to “strengthen the fiscal framework”.

“What we are taking to the president is consistent with the thesis that we are defending, of strengthening the fiscal framework”, declared the minister when reinforcing that he presented the country’s fiscal situation to the other ministers in the meetings that were held this week.

Asked about his assessment of the Central Bank’s (BC) announcement, which raised the basic interest rate to 11.25% per year, Haddad said he had not yet had time to read the statement.

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