Minister Fernando Haddad stated that he would not change decisions taken at the head of the Ministry of Finance and said that he should leave his position next week. When taking stock of the administration that began in January 2023, Haddad refuted criticisms of the conduct of tax policy and maintained that the government sought to collect taxes from groups that, according to him, were beyond the reach of taxation.
“We made these changes and, in my opinion, I wouldn’t do anything differently,” he said in an interview with Opera Mundi on Friday night (13).
Since taking over the Treasury, Haddad has been at the forefront of central fronts of the government’s economic agenda, such as the design of the new fiscal framework, the conduct of the tax reform on consumption and income, and the defense of measures to increase revenue collection and seek to meet fiscal targets.
The minister is the target of criticism from market agents for not having carried out deep spending cuts in the public sector, given the rise in the debt-GDP ratio, which accelerated under the Bolsonaro administration, but which continued the trend under the Lula government.
In the interview, the minister said that the decision to leave office was taken after the worsening of the political scenario. According to him, the initial idea was to dedicate himself to preparing the government plan for President Luiz Inácio Lula da Silva’s re-election campaign, but the change in the political environment altered this plan.
“In these three months of talking to him [Lula]the scenario became more complicated. The sky is less blue than I imagined at the end of last year. So, I’m talking to the president and I should leave the Ministry next week”, he declared.
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Haddad also indicated confidence in the transition in charge of the Treasury. The most popular name to replace him is that of the department’s current executive secretary, Dario Durigan. Without directly defending the assistant, the minister said he would leave the ministry in “good hands”.
Haddad did not confirm which position he intends to run for, but his departure comes amid advances in articulations for a candidacy in São Paulo. Behind the scenes, the movement is treated as part of the PT’s strategy to have a competitive name in the country’s largest electoral college, in a possible dispute against governor Tarcísio de Freitas. According to Reuters, .
When commenting on the economic scenario, Haddad once again expressed concern about the level of interest rates, despite the slowdown in inflation. According to him, the tax reform, scheduled to come into force next year, could boost activity even further. The Copom decides on a likely Selic cut next Wednesday (18).
Regarding the rise in oil prices amid the war in Iran, the minister said he saw no reason for major concern. According to Haddad, although the rise in prices has inflationary potential, the movement can also increase revenue, since Brazil is a large oil producer. “Even with this oil business you have a natural increase in revenue, because Brazil is a large oil producer, so you will have an increase in revenue because of that, naturally”, he stated.
On Thursday, Lula signed a provisional measure that eliminates PIS and Cofins on diesel, provides for the payment of subsidies to producers and importers and creates an export tax on oil.
