There is no shortage of collection. Since the beginning of the government ,. Still, we continue discussing how to raise more, which can be taxed without generating new wear. The account does not close, and the problem is not in the calculator. It is in the government’s delay in facing public spending.
O. In the early afternoon of last Thursday (22), the ministers and announced the freezing of about $ 31 billion in expenses of the IOF, as an attempt to meet the promised fiscal target. The reaction was immediate and negative: the president of the Central Bank, and the.
In the end of the night, in view of the negative repercussion, the government had to partially retreat from the measure, canceling the increase of the rate on investments abroad, even though it maintained the increase in tax in other operations, such as business loans and international purchases.
The government entered its third year without clear fiscal planning, excessively betting on increasing revenues without seriously facing expenses. This strategy has obvious limits.
Social resistance to any new tax is growing, and the inconsistency of fiscal policy is increasingly exposed. It is not enough to signal responsibility only when the fiscal goals are already committed.
Economist Olivier Blanchard, in a recent article, draws attention to the role of expectations in conducting economic policy. According to him, one of the most important advances of macroeconomics in recent decades was to understand how.
For a fiscal policy to be effective, it is not enough just to announce goals; It is necessary to signal coherence and predictability. If the government conveys contradictory signs, improvising measures, constantly retreating and advancing, confidence deteriorates rapidly.
The result appears at higher interest rates, persistent inflation and less economic growth.
Fiscal responsibility is important for this. It is not just an accounting principle, but what ensures that public policies can have real results. When public debt grows too much and the deficit persists, it pressures inflation, directly reducing the purchasing power of families.
The practical consequence is that there is no readjustment of the minimum wage or family scholarship capable of fully compensating for this erosion. Fiscal instability, contrary to what it may seem, penalizes those that depend on the state and social policies.
The consequence of this delay in acting and hesitation in the execution of tax measures is the deterioration of public trust. Now each new tax proposal is received with resistance and distrust. The IOF became the target of criticism and memes even before it was implemented.
The attempted more rigorous supervision on informal entrepreneurs caused alarm and revolt. The taxation of imports became synonymous with protectionism, precisely.
It is urgent that the government recognizes that the fiscal adjustment necessarily goes through the expense before seeking new revenues. The issue has never been a lack of money coming in, but political resistance to give up inefficient privileges and programs. Until this is not faced, any fiscal effort will continue to be improvised. And, as the country has known for a long time, improvisation has not close accounts, it only deepens the hole that all of us, in the end, are called to cover.
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