Fernando Haddad says that the list of expenses that will be reduced still needs to include a reduction in the Armed Forces budget
The Minister of Finance, Fernando Haddad, said that the government’s decision has been defined, but that it depends on the return of the Ministry of Defense.
“The set of measures has been agreed with the president and we will announce them soon. There is a lack of response from a ministry, the Ministry of Defense. We had good meetings with the minister, with the commanders of the Forces, we asked to incorporate as much as possible to take advantage of the opportunity and correct distortions“, Haddadem said to CNBC Brazil.
Haddad said the announcement will be made soon. He stated that he had “good meetings” with Minister José Múcio and the commanders of the Armed Forces and that the readjustment in the ministry’s expenses seeks to correct “distortions”, at the request of the president (PT).
“President Lula asked to incorporate as much as possible, to take advantage of the opportunity and correct distortions. The objective is for Brazil to continue growing sustainably. Because if there are distortions, the tax framework may lose credibility (…). This set of measures concerns the evolution of expenditure. How will it continue to grow in an orderly way, within the rules, or put sustainability at risk? Our option is the first”, declared Haddad.
As the Poder360the cut, being R$30 billion in 2025 and R$40 billion in 2026.
CRITICISM FROM MINISTERS
Asked about complaints from other ministries regarding the cuts, Haddad said he considered it to be normal and that members of the government’s first echelon “they are in their role to defend their agenda”.
“I was once minister of education, I also complained. They are in their role to defend their agenda. What we are doing is to guarantee this agenda of the ministers. Because if the country stops growing, if the cake stops growing, it’s the worst of all worlds. Because you will compete for a bigger slice of a pie of the same size. It doesn’t make sense”, he declared.
At the same time, he criticized his government peers for having a “relative view” instead of a “absolute vision”. Spoke in “moderate expenses and restore income”.
“You can’t just see your relative position, you have to see your absolute position. If your budget is growing, but another priority established by the president is growing a little more, on average, we have to grow moderately to fit within the budget. Within the rules”, said Haddad.
