The announcement of mandatory spending cut made by the Minister of Finance, Fernando Haddad, this Thursday (28), received praise from the Central Única dos Trabalhadores (CUT) and the União Geral dos Trabalhadores (UGT). In notes, the workers’ centrals expressed approval of most of the federal government’s fiscal adjustment measures.
The CUT, however, criticized pressure from the financial market and part of the press for putting pressure on the government “with the supposed specter of the fiscal crisis to carry out unpopular cut measures that impact social policies and the poorest people”. And he pointed out points that “need to be reviewed”.
Among the initiatives praised is the income tax exemption for those who receive up to R$5,000because “it eases the pockets of those who contribute most to the development of Brazil and who today pay more taxes”.
The center also supported the taxation of income above R$50,000, considering it “a necessary step to confront social inequality in Brazil, as well as the restriction on tax benefits, which in the case of a primary deficit in the accounts, prohibits the creation, expansion or extension of tax benefits”.
The CUT also praised the changes to the military’s social security benefits and the mandatory nature of half of the parliamentary amendments to restore the health budget.
The center’s criticisms point to the review of “reducing the scope of the salary bonus, by reducing the reference value, as this benefit was intended for the lower-paid formal workers, that is, the poorest”.
“We recognize that within the package presented by the minister there are advances for the working class, which must be maintained; but CUT will be vigilant in this process so that we do not suffer losses”.
The UGT note states that “the change in taxation represents a significant relief for millions of Brazilians, especially for those who face the pressure of tight budgets given the rising cost of living. The measure also promotes greater tax equity, as it reduces the burden on low- and medium-income workers.”
“The announcement reinforces the importance of public policies that prioritize reducing inequality and promoting a fairer income distribution.”
