The new fiscal framework will guarantee investments and will please everyone, including the market, said this Thursday (9) the Minister of Planning and Budget, Simone Tebet. She made the statement after having lunch, at the Ministry of Finance, with Minister Fernando Haddad, and reaffirmed that the complementary bill should be released later this month.
Tebet and Haddad met to discuss the new fiscal framework provided for by the Constitutional Transition Amendment. Last week, the Treasury concluded the modeling of the proposalwhich was sent to the Ministry of Planning to guide the drafting of the 2024 Budget Guidelines Law (LDO).
According to the minister, the text reconciles concerns with the sustainability of public accounts and the need to guarantee investments for the recovery of the economy. She informed that it will now be up to Haddad to take the proposal to President Luiz Inácio Lula da Silva.
“It is a responsible fiscal framework, concerned with fiscal responsibility, with the primary deficit, with the stabilization of the [relação] debt/GDP, but, in response to a fair request by the President of the Republic, because that is what Brazilian democracy wants, that we have to have the necessary resources for Brazil to grow again”, declared SimoneTebet.
Despite evaluating that the framework will guarantee the sustainability of public accounts, the minister did not commit to a forecast of when it will be possible to zero out the primary deficit (a negative result in government accounts without interest on the public debt). She said that the new rules are responsible and that they will please everyone, including the financial market, but did not provide details about the proposal.
Recently, the Minister of Finance informed that he intends to disclose the fiscal framework model before the next meeting of the Monetary Policy Committee (Copom) of the Central Bank, which will take place on March 21st and 22nd. The expectation of the economic team is that the project will provide security for the monetary authority to start the process of lowering the Selic (basic interest rate).
