TCU president said at an Arko Advice event that it is also necessary to improve bodies that take care of fiscal governance
The president of the TCU (Tribunal de Contas da União), Bruno Dantas, said that it is not enough for Brazil to have a fiscal rule, but also to have a “Tax Governance”. The minister’s speech is a reference to the new rule that is being structured by the Ministry of Finance to replace the spending ceiling.
“It is not possible to have sustainability in spending [público] if we don’t have a solid fiscal foundation. And, for that, rules are not enough, it is necessary to improve, or re-institutionalize, the bodies that take care of fiscal governance. Fiscal rules are not enough, fiscal governance is necessary”, said Dantas during the event “Arko Conference 2023” this Monday (27.Mar.2023).
The president of the Court of Accounts also said that the ceiling created in 2016 by the former president Michel Temer it was useful for a period to re-establish Brazil’s credibility. But, when primary expenditure came close to the limit, the rule proved insufficient and created a “race for exceptions”.
Dantas also considered that it was proven that the constitutionalization of fiscal rules was not a good way out for the country. For the minister, the correct line is to have a consistent fiscal rule in the Constitution and, from there, return to legislate through complementary laws.
“This requires, within the fiscal framework being designed by the government, a new way of making the Budget. Everyone knows how the Budget was managed over the last 4 years. something needs to be done […] It is necessary to have a great structuring development plan. That’s why the minister Simone Tebet is thinking about the multi-year plan”, said Dantas.
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