Minister of Planning declares that social or fiscal responsibility “is not Sofia’s choice” and that the government will “target” the center of the zero deficit target in 2025
The Minister of Planning and Budget, said this Friday (November 29, 2024) that the government of the president (PT) need “guarantee the sustainability of public debt” and that the measure will lead to a fall in the basic interest rate, per year. When speaking about the topic, he cited the next president of (Central Bank), Gabriel Galípolo, who takes office in 2025.
“We are going to make Galípolo’s life easier from January because we want lower interest rates so that the economy continues to grow”declared during the Annual Lunch for Bank Directors, held by (Brazilian Federation of Banks), in São Paulo (SP).
Tebet also said that “It’s not Sofia’s choice, social or fiscal responsibility” and that Lula knows this. The minister also justified her stay in government and that the PT member is committed to balancing public accounts.
“EI am the talking cricketwhich I talk about all the time, as more liberal than I am. ‘President, Brazil’s problem is not a lack of money’. We spend a lot, but worse than spending a lot is spending poorly. We need to ensure the efficiency of public spending”he declared.
ZERO FAILS
Simone Tebet also stated that the government will “aim for the center of the goal” fiscal year in 2025, to eliminate the primary deficit. In April, the economic team decided established by law for 2025.
As a result, it went from a primary surplus of 0.5% of GDP (Gross Domestic Product) for a result in which revenues and expenses remain at the same level, without considering the payment of interest on public debt. There is also a deficit tolerance margin of 0.25%.
DESEMPREGO AND PIB
The minister also commented on data from Pnad Contínua (Continuous National Household Sample Survey) for the quarter ending in October. Brazil’s unemployment rate (August, September and October), according to the (Brazilian Institute of Geography and Statistics). This is the lowest level of unemployment in the historical series, which began in 2012.
“Brazil will grow more than 3% after growing almost 3% last year. And today, historical data came out that we are experiencing the lowest unemployment in the entire historical series since 2012. This is the Brazil we want”he stated.
And he said: “We know that these numbers do not stand alone. They are thanks to the private initiative with the effort of the Brazilian State”.
EDUCATION AND HEALTH
Tebet declared that if the government placed the education and health floor within the limits of the framework, it would have “political problems”. He said that Brazil is already “spending to the limit” of the fiscal framework with both areas.
The head of Planning also stated what “it was a mistake” not having included the Pé-de-Meia program in the Budget.
DRU
When talking about the reformulation of the DRU (Decoupling of Union Revenues), he said that it was his request and that of the Ministry of Planning and that the measure was extended to some property contributions.
“This will reduce pressure and the issuance of public debt. It will allow us to have fiscal space because Brazil’s biggest problem, unfortunately, is indexation. Brazil’s problem is that it doesn’t have space to spend on what we call discretionary expenses”he declared.
INCOME TAX
During a speech on Wednesday (Nov 27), the Minister of Finance, , that the IRPF (Individual Income Tax) exemption for those who receive up to R$5,000 per month will be paid for by the taxation of those who receive more than R$50,000 monthly. He declared that the measure will represent the “largest income tax reform in history”.
The announcement made by the minister while announcing measures to adjust public accounts caused . When talking about the topic, Tebet mentioned Congress and recalled that she was once a senator.
“I am convinced, as someone who spent 8 years in the National Congress, that Congress will have the necessary balance and wisdom to say: ‘It is a more than fair and necessary measure for the Brazilian people’. We will find, together, the Legislative and Executive, alternatives so that everyone can contribute fairly to this measure”these.
