The governor (Republicans) for the second day in a row used a speech at Palácio dos Bandeirantes, headquarters of the São Paulo government, to criticize the government () because of its economic policy and highlight differences with its management, defending fiscal responsibility and spending cuts.
This Thursday (23), Tarcísio said that “Brazil is spending what it shouldn’t spend” and “it is not doing well”. The day before, in his first official event at the palace in 2025, he stated that this will be a “year full of challenges” for the economy, but that São Paulo will have the capacity to “make the crossing”.
The statements take place in the same week as the inauguration as president of the , which was seen as a gesture by Tarcísio to nationalize his name. He says he will seek re-election in the state.
The governor told an audience of municipal health secretaries this Thursday that he foresees a “gigantic fiscal challenge” and a “difficult” and “complicated” year. The statements refer to criticism of the Lula government’s lack of control over spending, which impacts inflation, interest rates and growth.
“Brazil is not doing well from a fiscal point of view. It is a country that is spending a lot. It is spending what it should not be spending,” he said, citing effects on inflation and, consequently, on interest rate policy.
“The economy will slow down”, he added, warning secretaries about the risk of falling revenue.
“It’s going to happen”, said Tarcísio, speculating about a drop in transfers from the FPM (Municipal Participation Fund), Fundeb (Basic Education Maintenance and Development Fund) and ICMS (Tax on the Circulation of Goods and Services). “It’s going to happen,” he repeated.
As on the previous day, the governor cited measures from his administration that, in his opinion, could shield the state of São Paulo from harsher consequences. He praised the São Paulo in the Right Direction plan, launched last year with the argument of expanding investments and the efficiency of the public sector.
“We came to prepare the state for this. That’s why we carried out privatization, cut costs, eliminated positions, cut 20% of positions. That’s why we reviewed tax benefits. How difficult it is, but there are benefits that don’t make sense , and we needed to do this, to have savings, because we will need it.”
According to the government, 263 tax benefits were reviewed and 88 of them, “which were no longer fulfilling their role of attracting investment, generating employment and competitiveness”, were not renewed. “The measure had an impact of R$ 10.3 billion on the tax waiver, equivalent to around 15% of the estimated ICMS waiver for 2025”, stated the management, in a note.
“The São Paulo government demonstrates that it is possible to combine fiscal efficiency, social responsibility and economic growth”, he also said, after citing a forecast of R$50 billion in investments in the state in 2025, with auctions for the expansion of the health network, the revitalization of the center of the capital and improvements to highways.
Tarcísio said in his speech that he will bring together mayors on the 6th to discuss the economic scenario and forms of help from the state government, since “those who don’t do their homework will have difficulty.” He also stated that the effects of the economic slowdown are coming sooner than he imagined.
Since the end of last year, , blaming the Lula government’s loss of credibility in the fiscal area as the cause of the disarray.
When celebrating Trump’s inauguration, Tarcísio posted putting on a cap with the Trumpist slogan “Make America Great Again” and saying “great day”, an expression used by the former president (), his ally, to celebrate victories over opponents.
The governor said that the Republican’s return to the US government brings “winds that point to progress, prosperity and freedom.” He has also declared that Trump represents hope and a victory for conservatism, patriotism, freedom of expression, as well as “a stronger economy, with fewer taxes”.
The statements provoked criticism from the right and the left.
In the conservative camp, Tarcísio was accused of opportunism, because he was not sufficiently embracing right-wing ideological flags in his government. Opponents on the left cited Trump’s decisions that could be harmful to Brazil, such as the increase in trade tariffs.
This Wednesday, one day after praising Trump, who is the governor for combating the effects of the climate crisis in the state.
