Lula ordered ministers to meet fiscal target

The Minister-Chief of the Secretariat for Institutional Relations, Alexandre Padilha, said this Wednesday (31) that President Luiz Inácio Lula da Silva determined that all ministers comply with the rules of the so-called fiscal framework. “This fiscal rule is in effect, President Lula will comply with this rule and he determined to all ministers: ‘You have to comply’”.

“When we took office, there was a real fiscal bomb about to explode in Brazil that had been caused by the previous government. Unfortunately, the previous government decided to carry out an exit poll operation before the elections, spending more resources than Brazil could afford – including reducing the revenue of states and municipalities.”

“We were gradually dismantling this bomb,” said Padilha, in an interview with radio stations during the program Good morning, Minister.produced by Brazilian Communications Company (EBC). “In addition to dismantling this bomb, we needed to create, for Brazil and for the world, a new rule. Say the following: ‘Look, the game will now be like this’. So that everyone knows the rules.”

“When we approved the fiscal framework last year, it made Brazil the second country in the world that attracted the most foreign investment. Just to give you an idea: the funds invested more than US$3.4 billion in Brazilian companies, the largest investment since 2014, that is, almost ten years later. Because they felt safe in this direction of the economy,” he concluded.

Understand

The federal government made official on Tuesday night (30) the freezing of R$15 billion in public spending. The decree with the details was published in an extra edition of Official Diary of the Union. The proposal is to maintain the zero deficit target this year, as provided for in the fiscal framework.

Among the ministries, Health was the most affected, with R$4.4 billion contingent; followed by the Cities department, with R$2.1 billion; Transport, with R$1.5 billion; and Education, with R$1.2 billion.

The Growth Acceleration Program (PAC) was also significantly affected – R$4.5 billion, between blocked and contingent amounts, which represent temporary spending cuts. There was also a cut of R$1 billion in committee amendments, R$153 million in bench amendments and R$9.2 billion in discretionary expenses.

With the decree, ministries and agencies affected by the fiscal framework have until next Tuesday (6) to adopt adjustment measures and indicate programs and actions to be blocked. In the case of bench amendments, there will also be an adjustment for equal division between the benches.

*Contributed by Priscilla Mazenotti, from National Radio.