The President of the Senate, Rodrigo Pacheco (PSDB-MG)stated, this Wednesday (13), that the National Congress will maintain the same level of commitment in analyzing the public spending cut package that it demonstrated during the tax reform.
In a speech at Forum Brazil, an event organized by the Group of Business Leaders (Lide), Pacheco highlighted that the objective of Parliament is to hold a discussion on the improvement of the Brazilian State, with a focus on optimizing public expenses.
“The same engagement that the National Congress of Brazil had in important and structuring reforms, in the most diverse legislative frameworks that have been conceived in Brazil in recent years, and now with the tax reform, will be the engagement for the discussion of public spending in Brazil ”, promised Pacheco.
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In his speech, the president of the Senate argued that negotiations around limiting the disbursement of government resources to cover expenses must follow the line of qualification, “and for what has been called cuts in relation to spending”.
Along the same lines, Pacheco said that, in order to “qualify public spending”, it would be necessary to stop the flow of waste, such as unfinished works and the weight of so-called “super salaries” in the Brazilian public budget.
The senator also highlighted the need to review the linking of the minimum wage to mandatory expenses, arguing that, without adjustments, this practice could harm the State’s investment capacity and compromise the country’s economic growth.
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“This logic of seeking to value the minimum wage, absolutely fundamental for the country, cannot at the same time link the growth of mandatory expenses when, in fact, what is required for the Brazilian State is that expenses with health and education can be made on the basis of ‘more with less’. In other words, there cannot be parameterized growth based on the increase in the minimum wage”, he concluded.
After the Lide event, Pacheco went to the Palácio do Planalto, where he met with the president Luiz Inácio Lula da Silva (PT). One of the main topics of the meeting is precisely the spending cut package that the government intends to send to Congress.
According to the Minister of Finance, Fernando Haddad (PT)the proposal aims to respect fiscal rules and ensure economic sustainability in the coming years.
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