Minister states that Lula asked for a meeting with another Esplanada body; declares that he will talk to the president about forwarding it to Congress
The Minister of Finance said that the progress of discussions on the package to review public spending still depends on a meeting with authorities on Wednesday (13.Nov.2024).
According to Haddad, the president (PT) asked to hold a meeting with the “another ministry” not yet involved in the discussions. When questioned, the minister did not want to say which body it was.
“The president called for an effort to include a ministry […] a negotiation that must be concluded by Wednesday. I won’t advance [qual o órgão] because I don’t know if there will be enough time to incorporate his request”he declared to journalists upon leaving the Farm this Monday (11.nov).
In practice, Haddad’s speech indicates that a Resolution to impasse faces tight timetable. There are some factors that influence:
- the meeting on Wednesday, which would prevent the announcement 1 day before;
- the minister has already said that he would meet before the official announcement with the presidents (PP-AL), of the Chamber, and (PSD–MG), of the Senate;
- the Proclamation of the Republic holiday on Friday (Nov 15);
- the Summit, held in Rio de Janeiro at the beginning of next week.
Asked what the specific date would be for the measures to be made official, Haddad threw the ball to Lula: “I don’t control. This is the president’s calendar.”.
Another of the minister’s plans is to meet with Lula on Tuesday (Nov 12) to discuss forwarding the measures to Congress. He had already signaled that it would be a PEC (Proposed Amendment to the Constitution) and a complementary bill.
THE RESULT OF THE MEETINGS
The economic team and other ministers supported Lula over the past week. There was disagreement on the Esplanada and the political cost of any actions, which could harm the government’s popularity.
Ministries that have already been involved in the discussions were:
- Educationby Camilo Santana;
- Work and Employmentby Luiz Marinho;
- Healthby Nísia Trindade;
- Development and Social Assistance, Family and Fight against Hungerby Wellington Dias;
- Pensionby Carlos Lupi.
Haddad stated that the impasses between the bodies have been resolved. He reinforced that the order is to speak to the other ministry – the one he did not want to disclose.
“Of the ministries that were at the table all last week, we have already concluded the debates. The acts are already being done and forwarded to the Civil House, for formal review”these.
Haddad confirmed that some of the members of the Lula government met at Palácio da Alvorada on Sunday (Nov 10) to finish adjusting details of the review plan. Defined the changes presented in the Treasury proposals as “improvements”.
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EXPENDITURE REVIEW
Ministers have invested in a speech on the expenditure review since June. But few structuring and concrete measures were presented. There are doubts about what will actually be done and the market has put pressure on the economic team.
The government has committed to balancing public accounts in 2024. The objective is for expenses to be equal to revenues – a zero deficit is expected. In practice, it is necessary to increase revenue and reduce expenses. However, little was done on the side of the 2nd option.
Lula’s team waited for the end of the electoral period to announce the proposals. Financial market agents expect a robust package to reduce the expansion of mandatory expenses. The BPC, unemployment insurance and salary bonus may be subject to changes.
O Poder360 already that changes are on the radar – paid to fishermen when the practice is prohibited for reasons of species preservation – and in the salary bonus. The BPC must also be subject to changes.
The government announced a to make adjustments and combat fraud, but changes in the job market in recent years require structural measures. The economic team’s mission is to convince President Lula’s allies that the redesign is a gain for society.
