Minister Fernando Haddad (Finance) stated this Wednesday (13) that the social ministers who were against cutting government spending have already been convinced of the need to adjust the accounts. He spent the day in meetings – including with the president of the Chamber, Arthur Lira (PP-AL), in the early afternoon – to discuss the details of the fiscal adjustment.
He pointed out that the intention is to include all possible expenses in the rules of the fiscal framework, which limit the growth of expenses from year to year. Despite stating that the cuts are already underway, he stated that they will be “cost containment measures” and that there is no official announcement expected.
“The general rule was established last year. And what is coming out of the general rule, we have to try to put it under the same umbrella so that it is sustainable over time. That’s the principle,” he told reporters.
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Haddad confirmed that the measures should reach the Ministry of Defense, which is the last department that President Luiz Inácio Lula da Silva (PT) had asked for an extra effort to signal that the cut would reach the so-called “top floor”, and not only about social benefits. He pointed out, however, that the Armed Forces’ “expense containment” is still being studied.
“The ministers were subjected to this idea, they reacted in various ways, but everyone understood the need for us to have sustainability in the coming years. If it depends on me, this architecture should be long-term in Brazil”, said the minister.
In addition to Defense, which Lula discusses this afternoon with Minister José Múcio Monteiro, Social Security, Social Development, Labor and Employment, Health and Education will also be affected. These last two must include the constitutional floors in the framework.
Haddad confirmed that he had a meeting with Múcio in the morning and that the ministry’s technicians discussed measures with those from the Armed Forces.
The minister also pointed out that the government will not ask for measures to increase revenue to reduce the gap in the accounts nor the review of subsidies, which is a strong request from left wingers.
“Programming is a framework [fiscal]right now. We are working to strengthen the framework. […] Subsidies will continue to be faced, but in this set of measures we are working on the issue, the dynamics of spending”, he said.
Fernando Haddad stated that the issue of Defense and the inclusion of benefits for military personnel are still under discussion.
He did not talk about an expected announcement, which should only occur after the G20 meeting, scheduled for next week.
