The Minister of Finance, Fernando Haddad, stated this Friday (29) that the government’s economic area will discuss fiscal measures again if it concludes that it is necessary in “two or three months”.
“If in two or three months, we identify risks to this trajectory, we will have to return to the table to check what adjustments will have to be made to maintain this trajectory”, said the minister in an interview with Rede Record when asked if has the government cut as much spending as it could or whether the cuts can still be reviewed in the future.
The market has been anxiously awaiting the announcement of the measure since before the municipal elections in October and expectations about the content of the measures have affected Brazilian assets in recent weeks.
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Since the Minister of Labor and Employment, Luiz Marinho, confirmed media reports that the exemption from Income Tax for those receiving up to 5 thousand reais per month was under discussion in the government, the dollar reached a series of historical records and the Ibovespa recorded its worst week since September this Friday.
Asked whether having announced the increase in the tax bracket along with the tax proposals was responsible for the market stress, Haddad lamented the leaking of the measures before the right time, which, according to him, caused misreadings that mixed the two themes.
The minister stressed that cases like this are caused by noise, which depend on clarification over time and are not resolved instantly. “Why did the dollar retreat today? Due to the explanations that were given”, he stated, referring to a moment of decline in prices.
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Haddad highlighted positive indicators, such as the current pace of economic growth and the low unemployment rate, but acknowledged that inflation is “going a little off track” and pointed to inflationary pressures on food prices, especially meat, as a point of concern. government concern.
The Broad National Consumer Price Index-15 (IPCA-15) rose more than expected in November as rising food prices offset moderation in electricity costs. The IPCA rose 0.62% in November, from a rise of 0.54% in October, according to data from the Brazilian Institute of Geography and Statistics (IBGE).
The increase in food prices at home accelerated from 0.95% to 1.65% in November, weighed down by soybean oil (8.38%), tomatoes (8.15%) and meat (7.54%) .
