Lula’s minister talks about raising debt to protect the popular economy

In the context of the tariff war launched by the president of the United States, the Brazilian government is already subsidizing diesel and evaluating new actions for gasoline, fertilizers and cost of living

The minister (Institutional Relations) stated this Thursday (April 16, 2026) that the government can increase the country’s debt, if this is necessary to protect the popular economy. The statement was made at a breakfast with journalists at Palácio do Planalto.

If you have to increase the country’s debt to save the popular economy, you have to do it“, said the minister.

The statement was made in the context of the effects of the tariff war launched by United States President Donald Trump. Guimarães said that the government works with the hypothesis that the conflict will end in 2 months, but acknowledged the uncertainty of the scenario. According to him, the measures being developed follow this projected deadline.

Among the initiatives already adopted, the minister cited the agreement signed between the Union and the states to subsidize diesel for up to 2 months. The agreement establishes an incentive of R$1.20 per liter of imported diesel, on an exceptional and temporary basis, to contain the effects of international oil volatility.

In addition to the subsidy, the government reduced federal taxes, which represents a drop of R$0.32 per liter.

With both measures, the total reduction is estimated at R$0.64 per liter for the consumer. 80% of states have already signaled adherence to the proposal.

The minister stated that the government will announce in the coming days a new set of measures to contain the impacts on consumers. He cited diesel, gasoline and fertilizers as areas of concern. “The country will not let Trump’s account be transferred to the consumer,” these.

Regarding possible measures for gasoline, ministers Bruno Moretti (Planning) and Dario Durigan (Finance) are studying the topic.

Guimarães also addressed family debt, which he classified as the government’s priority agenda. He said that measures will be announced in the coming days, including changes to debt renegotiation programs, with interest reductions.

BETS

When asked about online betting houses, Guimarães said that the perception he has of Congress is that “the group agrees”.

He recognized the position of President Lula, who has already stated that he is against the continuation of bets, but considered that the correlation of forces in the Legislature needs to be taken into account. “For the government, it cannot continue the way it is due to family debt”he stated.

According to him, the topic is under discussion in the government and there is a majority in Congress to move forward with regulation.

BANCO CENTRAL

The minister once again criticized the Central Bank, placing high interest rates as the main factor in the indebtedness of Brazilian families.

According to him, the municipality maintained the high rate even with inflation within the target. “You can’t give one hand and take away with the other”he stated.

For the minister, the BC “you already missed the opportunity to lower interest rates“. He avoided commenting on possible new appointments to the municipality’s board of directors.