The approval of the Legislative Decree nullifies the increase in the Lula Financial Operations Tax (IOF) tax in May, was received with caution by the Governor of Pará, Helder Barbalho (MDB). Without directly criticizing the Plateau, the emedebista stated that the country needs to “reconcile” the fight against the fiscal deficit with measures that allow the resumption of economic growth.
“Brazil needs to find ways that can make the economy grow, with interest rates, with which the dollar can lower and, with that, we can bring development to all our country. This is our expectation,” Barbalho said in an interview during the inauguration of the Chocolat Festival in Altamira, on Thursday (26).
Speech occurs when Helder Barbalho’s name is pointed out, behind the scenes, as a possible deputy on Lula’s plate to reelection in 2026. Despite the rapprochement with the federal government, the governor has adopted more technical and inspector -biased speech, advocating greater efficiency in public management and reducing the cost of the machine.
Not to mention the federal government’s measure directly – which would raise IOF’s rates on international cards and abroad remittances – Barbalho highlighted the need to discuss solutions for the break in public accounts.
“It has to be discussed what is the solution to the fiscal deficit. There is a significant deficit that has even generated an increase in interest rates for each Copom meeting,” said the governor. “We need to reconcile so that Brazil can reduce the cost of the public machine, can be more efficient with opportunities, including having a budget that improves investment as a central point.”
Investment as a priority
Helder quoted Pará as an example of efficient use of public resources. “In the last year, we were the third state that most invested in the public budget in Brazil, with 14%, only 0.5% below what invested the most,” he said. For him, “using the public budget for what society expects” is essential for development.
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The Lula government estimated to raise R $ 10 billion with the increase in IOF by 2025. The measure was harshly criticized by economic and parliamentary sectors of the center and opposition, for directly penalizing consumers in everyday operations, such as abroad purchases. With the overthrow of the decree, the rates return to previous levels.
Fiscal and political impact
The reversal of the increase in IOF marks a political defeat for the government and raises doubts about its ability to move on unpopular tax agendas. At the same time, it lights the warning signal to the challenge of maintaining the sustainability of public accounts without resorting to short -term collection measures.
