The Brazilian government expected a contribution from Germany to the Tropical Forests Forever Fund (TFFF) during COP30, in Belém, but now there is an expectation that the country will announce the amount that will be donated by the end of the year, said Finance Minister, Fernando Haddad, this Monday.
In an interview with CNN Brazilhe also stated that he hopes that the TFFF will surpass the US$10 billion mark in contributions during Brazil’s COP Presidency, citing China, the United Arab Emirates and the Netherlands as countries that have shown support for the fund.
Ponding
The minister also stated that, if federal revenue continues to “come well”, the government should get closer to the center of the target of zero fiscal deficit this year, due to the pooling — resources that are released to ministries, but end the year in cash.
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According to Haddad, the total value of the pooling usually amounts to between R$15 billion and R$25 billion of the budget each year.
“If this collection continues to come in well… The same phenomenon that happened last year will happen this year. Due to the pooling, you end up bringing the result very close to the center of the target”, he said
The goal for the year is zero primary result, with a tolerance margin of 0.25 percentage points of the Gross Domestic Product (GDP) for more or less.
When carrying out its periodic assessments of the year’s fiscal progress, the government has been targeting the lower limit of tolerance, with officials from the economic team having argued that a possible effort to pursue the center of the target at this point in the year would make budget execution impossible.
In October, the Federal Audit Court (TCU) accepted a government appeal and suspended a previous decision that would force the Federal Executive to seek the center of the target in 2025. The National Congress also approved a rule that authorizes the government to pursue the tolerance floor.
The minister assessed that the country’s fiscal situation is much better than in previous years, arguing that the government is managing to solve problems from past administrations.
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Fees
In the interview, Haddad stated that Gabriel Galípolo is doing a good job as president of the BC in relation to procedures to curb abuses in the financial system, also citing participation in the debate on the new housing financing model in the country.
“The Central Bank is more than the Selic, right? The Central Bank involves many other things”, he said.
However, days after the BC maintained the Selic rate at 15% per year without indicating when it might reduce the rate, the minister once again stated that there is room to cut interest rates in the country. According to him, this opinion is supported by banks.
