The (Brazilian Association of Publicly-Owned Companies) expressed concern about this in a note and argued that it should be used to reduce information asymmetries.
The association, which brings together 453 publicly traded companies, says that “public commitment to , preventing legal and tax uncertainty from compromising companies’ financial planning and holding back productive investments in the country” is essential.
Abrasca argues that it is necessary to reestablish confidence in the government’s ability to act, controlling the growth of expenses and without increasing the tax burden.
Furthermore, he advocates that the government work together to overcome “this critical moment” and advance policies to improve the quality of public spending. The association suggests five lines of action for this, including expanding dialogue with market agents “to reduce information asymmetries and generate trust.”
It also proposes the creation of a program to improve the “quality of public spending at the center of the government with a mandate to coordinate the entire federal public machine.”
Abrasca advocates reviewing the design of public policies to ensure the focus of expenditure on the poorest population, with medium-term spending control goals.
Another suggested measure would be for the government to reinforce its commitment to fiscal balance through a public letter to the country and send a proposal for administrative reform and rationalization of the public sector.
Finally, the entity proposes that actions that increase legal uncertainty be interrupted, especially regarding tax issues.
“It is necessary to implement the best regulatory practices (for example: deadline for entry into force of the regulation, adoption of procedures for reviewing understandings, adoption of a national regulatory policy) and at the same time control the effects of disputes in the Judiciary to increase predictability.”
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