President Luiz Inácio Lula da Silva once again denied on Tuesday (16) that he will take any measures to cut the public budget that involve reducing the minimum wage for the poorest segments of the population, such as those who receive Social Security benefits. In an interview with TV Record, he emphasized that the growth of wealth in the country must be distributed equitably for everyone.
“When someone says that I should unlink the minimum wage from Social Security, the minimum wage, as they say, is the minimum. There is nothing lower than the minimum. So, I cannot cut the minimum wage, which is already the lowest of all. When you have to increase the minimum wage, you make up for inflation. If inflation was 3%, you make up for 3%. The GDP growth over the last two years, on average, we give an increase in the minimum wage. So, if the GDP grows 6% over two years, we give a 6% increase in addition to inflation. Which is humanly fair, socially fair.
Lula also highlighted the current economic figures, which are above market expectations, and once again criticized the Central Bank’s interest rates. “There is not a single figure that suggests that Brazil has any problems. We are growing more than the market predicted. The market predicted 0.8%, we grew 3%. The market predicted uncontrolled inflation, inflation is completely under control. The only thing that is not under control is the interest rate,” he said.
The president also praised job creation, the growth of the wage bill, and reaffirmed the commitment to exempt income tax for those earning up to R$5,000 per month.
“We created 2.5 million jobs in one year and seven months. The wage bill grew by 11.7%. The minimum wage is adjusted twice above inflation. Income tax exemption for those who earn two minimum wages and I intend to reach a R$5,000 income tax discount. We took 24 million people out of hunger. So, we are living in a sensational moment,” he celebrated.
Fiscal target
Lula was asked whether the government intends to modify the zero deficit target in public accounts in 2024 to comply with the rules of the fiscal framework, to which he responded that the most important thing is for the economy to grow with fiscal sustainability.
“This country is very big. Very powerful. What is small is the minds of the leaders, of some speculators. Because this country has no problems. If the deficit is zero, if it is 0.1, what is important is that the country is growing. What is important is that the economy is growing. What is important is that employment is growing. Salaries are growing. We will do whatever is necessary to comply with the fiscal framework. We will create a country with legal stability. We will create a country with fiscal stability, with economic stability, with social stability. This country will have predictability,” he said.
Next week, the Ministry of Finance is expected to announce budget blocks to meet the primary result target, according to announced the ministerFernando Haddad.
Political violence
The president also commented on political violence in the world, once again echoing the attack suffered by former US President Donald Trump, who is running for office in this year’s US elections. For Lula, the world is living in an era where people do not respect each other and do not respect the strength of arguments.
“Any type of violence is abhorrent. It’s not just with former President Donald Trump. It’s the death of a mayor in a small town in the interior. It’s the death of a city councilman in a small town in the interior. So, we need to regain tolerance. What we have today is the defeat of argument, argument is worth very little. What counts today is lies, what counts is fake news. Because when you’re telling the truth, you have to argue. When you’re telling a lie, you don’t have to argue. That’s the difference that’s missing in Brazilian society today. The return of argument to political debates. There’s a lack of understanding of the world’s problems.”
Along the same lines, the president defended the urgency of regulating large technology companies, which control social media platforms.
“It is not possible for companies to continue making money by spreading lies, provocation, and anti-vaccine campaigns, without taking into account any commitment to the truth. I am in favor of regulating them, because these companies do not pay anything. They earn billions from advertising. They make a lot of profit from spreading hate around the world,” he said.
