Government postpones delivery of fiscal framework to next week

Initially expected to reach the National Congress this week, the proposal for the new fiscal framework should reach the Chamber of Deputies by Tuesday of next week (11), said the Minister of Planning and Budget, Simone Tebet, this afternoon. According to the minister, the economic team will take advantage of the Holy Week recess to make the final adjustments to the text.

Tebet participates in a hearing in the working group of the Chamber of Deputies that discusses the tax reform. She said that there was a discussion within the government to send the complementary bill that changes the fiscal rules until this Thursday (6). However, the emptying of Congress this week gave the government more time to make the final touches on the text, said the minister.

“The absolute priority now is to deliver the fiscal framework next week, by Tuesday, so that Congress can, obviously within its time, but as quickly as possible, move forward on the issue of the fiscal framework. This is the bronze bullet we have”, declared the minister.

Tebet took advantage of the hearing to reinforce the need for approval of the new fiscal framework. “I appeal to you to look with affection at the fiscal framework that we are designing”, asked the minister to the audience of parliamentarians.

According to the minister, the new fiscal rules will create an environment that allows the reduction of the Selic Rate (basic interest rate for the economy), which is currently at 13.75% per year. “The framework provides confidence to the market that we are doing our homework, guarantees the stabilization of the debt in relation to GDP (Gross Domestic Product) in the medium term and guarantees that the government will not remain in the red, it will zero the deficit in 2024 ”, he highlighted.

On Monday (3), the Minister of Finance, Fernando Haddad, had said that the new fiscal framework could be sent to Congress by this Wednesday (5). However, he had admitted the possibility of leaving the shipment for next week.

According to the rules presented last Thursday (30), the new framework limits real growth (above inflation) of public spending to 70% of the real increase in revenues, within a range of 0.6% to 2.5% of expansion. There is also a schedule of targets for the primary result (result of government accounts without public debt interest), which will jump from a deficit of 1% of GDP this year to a surplus of 1% in 2025, with a tolerance of 0.25 percentage points more or less.