Recognizing reality has a price. And by recognizing today the reality that the fiscal effort it makes is not enough to balance the accounts, the price the government paid was to increase the tax burden.
Yes, there is realism in the announcement made today of blockade and contingency of funds. That surpassed a lot what was expected.
There is realism by the government to recognize that recipes given as certain have become frustrated. What is nonetheless worrying: what the government said today is that its budget forecasts for revenue were well mistaken.
There is realism in admitting, as it was made today, what expenses increased more than foretold, especially with social security and social benefits. Which is also worrying: it is precisely the expenses that the government claimed to contain.
Recognizing a harsh reality and overcoming it are very different things. Blocking, contingency and increased tax burden announced today only confirm what has been said since the beginning of the current government. That he is stuck in a fiscal trap. Which, in essence, means the fact that expenses always grow more than revenues.
The Finance Minister described today’s ads as an “adjustment.” Yes, that’s what it is. There is no fundamental change in the trajectory of Lula Três’s fiscal policy. Which points to public debt in climbing. Interest stopped at an unbearable level. And political-election measures that only push the bills forward.
The same price is getting to 2027.
