New fiscal rule will combine surplus target and spending control

The new fiscal rule that will replace the spending ceiling will combine a primary surplus target (a positive result in government accounts without public debt interest) and a limit to spending growth, said the Minister of Institutional Relations, Alexandre Padilha. .

“It has a surplus target and a control mechanism,” said Padilha about the new fiscal framework. The minister made the statement upon arriving at the official residence of the President of the Chamber of Deputies, Arthur Lira (PP-AL). Since the end of the afternoon, Haddad has been presenting the complementary bill to Lira and the party leaders of the Chamber.

The Minister of Institutional Relations also stated that the new fiscal framework will have countercyclical instruments – which allow the government to save more in times of economic growth and spend more in recessions. According to him, the final text will establish rules for the following governments and reconcile fiscal and social responsibility.

Padilha had stated that Haddad intended to bring forward the meeting with Senate President Rodrigo Pacheco (PSD-MG) to this Wednesday. However, the Senate informed that the presentation of the proposal to the senators will take place this Thursday (30).

The government finalized the definitive proposal for the new fiscal framework in a meeting at the Palácio da Alvorada, which lasted most of the afternoon. According to Padilha, President Luiz Inácio Lula da Silva, who is on a schedule at Alvorada to recover from pneumonia, gave Haddad the endorsement to present the text to deputies and senators.

In addition to Lula and Haddad, PT president Gleisi Hoffmann participated in the Alvorada meeting; the Executive Secretary of the Treasury, Gabriel Galípolo; the leader of the government in the Chamber, José Guimarães (PT-CE); the Executive Secretary of the Civil House, Miriam Belchior, and the Minister of Management and Budget, Esther Dweck. The Planalto Palace released photos of the meeting on social media.

During today (29) the president @LulaOficial participated in a meeting on the new fiscal framework with the presence of minister Fernando Haddad, from the @FazendaGovBrat the Alvorada Palace.

📷 @ricardostuckert pic.twitter.com/W6VsW8c9ra

— Planalto (@planalto) March 29, 2023

Economia,arcabouço fiscal,Nova regra fiscal,Alexandre Padilha,Arthur Lira,Rodrigo Pacheco,Lula,Superávit Primário,Controle de Gastos,Ministério da Fazenda,Fernando Haddad