As much as the government uses creative accounting, interest rates go up in the face of increased perception of fiscal risk, reaching Brazilian society
The Brazilian government has announced some measures for companies that will be reached by 50% rates. Among the measures are credit lines with subsidized interest rates, postponement of taxes and government purchases. According to the government, only a fraction of these measures will have an effect on the primary result, since most of the resources will come from government funds that are not accounted for in the fiscal target.
However, the fact that it does not achieve the primary result for accounting reasons does not mean that the population will not pay the bill. Of course, it goes, as subsidies are paid through taxpayer taxes. If the primary result will not be strongly impacted, the same of public debt and nominal result cannot be said, which considers all government revenues and expenses, without accounting makeup.
As much as the government uses creative accounting, interest rates go up in the face of the increase in the perception of fiscal risk, reaching Brazilian society. It is not about being against exporting companies affected by Trump’s fares, but recognizing that the Brazilian population is paying the bill for a problem that, in part, the government itself has created due to anti -American geopolitical positions.
*This text does not necessarily reflect the opinion of the young Pan.
