Former mayor of São Paulo declared that the 2023 Budget cannot be smaller than this year’s; he met with Guedes
Former Mayor of Sao Paulo Fernando Haddad (PT) defended this Thursday (8.Dec.2022) the approval of the PEC (Proposal for Amendment to the Constitution). He said that almost all parties participated in the approval and that there was no “party cleavage”.
He spoke to journalists after meeting with Minister Paulo Guedes (Economy), the 1st after the result of the presidential elections. Haddad is quoted to take over the finance ministry in the government of Luiz Inacio Lula da Silva (PT).
The ceiling-breaking PEC breaks the constitutional amendment of the spending ceiling by R$ 200 billion in 2 years. The objective is to pay, among other items, the Bolsa Família of R$ 600. It was approved in the Senate by 64 votes in favor against 16 against in the 1st round and 64 votes in favor and 13 against in the 2nd round. The text still needs to be analyzed by the Chamber.
The former mayor said that thegreater merit” of the proposal is that the solution is being “policy” and “negotiated🇧🇷 🇧🇷Almost all parties participated in the approval. There was no party split. We had favorable votes in several parties”, said Haddad. According to him, the 2023 Budget cannot be smaller than this year’s.
He said that the money would not be enough to honor the commitments for the next 12 months. 🇧🇷We try to pass on the concept of fiscal neutrality during the transition, that is, expenditure as a proportion of GDP in 2023 cannot be less than in 2022. December of next year cannot arrive with this year’s problems. It’s natural. Ah, but this will require arrangements. Go. It will require tax reform, it will require a new fiscal framework, a series of things that are on the agenda of the new government“, said.
AMOUNT CUTS
Haddad criticized cuts in funding programs for science scholarships, such as doctorates and residencies. 🇧🇷We will take necessary measures.“, said. 🇧🇷All areas are expensive. We are in dialogue with Congress, which is part of the solution”, he completed.
The Ministry of Economy announced a block of BRL 5.7 billion in the Budget in November to respect the spending ceiling rule. The measure hampered the financing of government expenditures.
The former mayor also said that he wants to have a government transition that is “theas smooth as possible🇧🇷 The transitional government is in the process of finalizing the reports from the groups in each area. The objective now is to harmonize the agendas that are already in progress. 🇧🇷It’s a natural, normal transition, we want it to be as smooth as possible and with the consequences we expect, for Brazil to grow more, generate more opportunities”, he stated.
The meeting with Guedes was not foreseen in the official agenda of the Minister of Economy. Haddad said that in the 1h30 of conversation it was possible to deal with the main themes and present the “general flight plan🇧🇷so much what he [Guedes] has in the plan for the country as what we intend to do next year🇧🇷
The former mayor of SP defended the continuity of important projects, regardless of which government is in charge. 🇧🇷These are things that are State policy, regardless of the government that addresses them.”, he reinforced. He did not go into more detail about the topics covered.
Haddad is one of those tipped to take over the Ministry of Finance, which today falls under the responsibility of the Ministry of Economy and houses secretariats such as the Treasury and Budget and IRS🇧🇷 the government of Jair Bolsonaro (PL) merged 4 portfolios into a single Ministry. The idea of u200bu200bthe elected government of the president Luiz Inacio Lula da Silva (EN) is to dismember them again.
Guedes has previously met with former Minister of Finance in the Dilma Rousseff (PT) government Nelson Barbosa and professor Guilherme Mello, who is in the transition of government.
#Haddad #highlights #political #solution #approval #PEC #Senate