Haddad says he closed a spending cut package with Lula

The Minister of Finance, Fernando Haddad, stated this Monday (25) that he had a “definitive meeting” with President Lula (PT) to conclude discussions on the public spending cut package. Without setting a date for the announcement, he said the measures will be presented this week.

“We reached an understanding within the government. The president has already decided the last pending issues”, Haddad told journalists upon leaving the ministry.

The minister highlighted that the proposal will be presented by Lula to the presidents of the Chamber, Arthur Lira (PP-AL), and the Senate, Rodrigo Pacheco (PSD-MG), before being forwarded to parliamentarians.

“Everything is already written. The Civil House is finalizing the shipment to be sent, of course. [será enviada] this week. Now, the day and time will depend more on Congress than on us”, he stressed.

The package is expected to be presented this Tuesday (26) to government leaders in Congress.

Earlier, Lula held two meetings with Haddad and ministers Rui Costa (Casa Civil), Esther Dweck (Management and Innovation), Paulo Pimenta (Secretariat of Social Communication) and Gustavo Guimarães (executive secretary of the Ministry of Planning).

The Finance Minister stated that the spending cut package will consist of a proposed amendment to the Constitution (PEC) and a complementary bill (PLP). Some of the topics covered will be included in projects that are already being processed in Congress. He said he had “hope” that the proposals would be approved in 2024.

In relation to the PEC, for example, Haddad stated that the government can include the spending cut package in the proposal that extends the Untying of Union Revenues (DRU), a mechanism that unlinks up to 30% of expenditures stamped for any purpose. This is because the DRU loses validity at the end of the year and needs to be approved in 2024, informed the Brazil Agency.