The Minister of Finance, Fernando Haddad (PT)stated that the government’s spending cut package is finalized, depending only on adjustments with the Ministry of Defense. According to Haddad, the set of measures, approved by President Lula (PT), is in line with what was planned by the economic team.
The statements were made in an interview with the channel CNBC Brazilshown last Sunday night (17).
The minister highlighted that it is natural for holders of other portfolios to press for the resources in their areas to be preserved. “I was Minister of Education and I have also made complaints. Each ministry defends its agenda, but what we are doing is so that everyone can grow together. The worst case scenario would be to fight for slices of a pie that doesn’t grow.”
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The expectation for the announcement of the government’s package of cuts was accompanied by tensions on the Esplanada dos Ministérios. In addition to Defense, two ministers — Luiz Marinho (Labor) and Carlos Lupi (Pensions) — even declared, in interviews, that they could leave their positions if the cuts affected social programs or rights.
In the interview, Haddad also defended the need to adjust public accounts to ensure the sustainability and credibility of the new fiscal framework.
Newspapers reported last week that the package of spending cuts prepared by the economic team should have an impact of around R$70 billion on public accounts in the first two years. The numbers, however, have not yet been confirmed.
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