“This was recognized by Arthur Lira himself”, says the Finance Minister in relation to Lula’s veto on the topic
The Minister of Finance, Fernando Haddadsaid that the president Luiz Inácio Lula da Silva (PT) complied with the agreement made with Congress even by vetoing R$5.6 billion in commission amendments. The statement was given in an interview with journalist Míriam Leitão, broadcast by GloboNews on Wednesday (21.Feb.2024).
“Everything that was agreed with the Executive was sanctioned. All. Including the cost of amendments. What the president vetoed was what was not agreed with the Executive, and this was recognized by the president himself [da Câmara, Arthur] Lira”he said.
Haddad, however, declared that he had not discussed parliamentary amendments with the presidents of the Chamber, Arthur Lira (PP-AL), and the Senate, Rodrigo Pacheco (PSD-MG). “I did not participate in the negotiations. I dealt with what was the responsibility of the Treasury”he said.
The minister also spoke about measures being processed in Congress to provide “continuity” to the economic reform agenda starting in 2023. He said that Pacheco “He has had a statesmanlike attitude” in conducting the work.
One of the sensitive points for the economic team has been the MP 1,202 of 2023 –which involves reimbursing the payroll of 17 sectors of the economy and also lowers other standards to increase tax collection. On December 28, Haddad presented the provisional measure, which faces resistance in Congress. Expires April 1, 2024.
On February 6, Haddad had agreed to deal with the impasse over payroll and salary relief. reduction of the social security rate from 20% to 8% for municipalities with up to 142.6 thousand inhabitants through a bill with constitutional urgency. He reinforced that the matter will be handled in this way.
O Persian (Emergency Program for the Resumption of the Events Sector) and the limitation to offset tax credits from companies that obtained judicial authorization will continue in the MP.
Haddad also responded to the events sector about the real impacts of Perse on public accounts. He said the segment “there’s no way to know”since the Federal Revenue Service has official data on tax waivers. “It’s black and white here”he stated.
When asked about the relationship with the president of the Chamber, Haddad reinforced that he called Lira at Lula's request before presenting the MP for the reinstatement.
“'Look, the way we reached the end of the year, there is a mismatch between the Budget and the Budget Guidelines Law, which sets a fiscal target that is not being followed by the Budget. We need to harmonize the two laws'”said Haddad.
TAX TARGET
Regarding the goal of eliminating the deficit in public accounts in 2024, the head of the Treasury stated that he will “persevere” in search of the result. “What is the role of the Executive? Return to Congress with new possibilities, a new formulation, with new numbers”he declared.
The Treasury expects that federal revenue in January this year will have a real increase (discounting inflation) of at least 4% compared to the same month in 2023. The data will be released this Thursday (Feb 22), at 11 am , by the Federal Revenue Service.
Haddad mentioned that the taxation of offshores and exclusive funds may have helped to boost revenues, but there was already expected growth for the month. “An extraordinary event may have occurred. Now, regardless of this, it is in line with what was projected in the Budget”he said.
CAMBIAL RISK
The Finance Minister stated that he will present a project next week to protect international investments against exchange rate risks. “We are going to pass a law that aims to correct one of the problems of the Brazilian economy. […] It has nothing to do with intervention in the exchange rate”he declared.
In November, the Treasury had raised the idea to reduce the impact of currency volatility.
G20
When asked about any news linked to the G20, a group that brings together the 19 most industrialized countries in the world plus the European Union and the African Union, Haddad said that Brazil will propose international legislation to regulate inheritance tax.
“Even so that democracy is not affected by the birth of a transnational economic oligarchy that even affects democratic processes, as has sometimes happened”he declared.
Brazil presides over the group this year.
LULA ABOUT ISRAEL
Fernando Haddad also said that Lula's comparison between Israel's attacks on the Gaza Strip and Adolf Hitler's actions against the Jews was a “cry for help” from the PT member about the conflict that has affected Palestinians and Israelis.
“One word or another of the president's speech can be discussed, but the president's cry for help is relevant. We cannot remain indifferent to what is happening, which is very serious. I would not like to depart from the essence, which is to seek a solution to that problem, preferably with 2 States as provided for in the United Nations resolution. The State of Israel, which Brazil defends, we all defend its integrity, after everything the Jewish people have experienced. I have no doubt that this proved to be an unavoidable historical necessity, that of the Palestinian State.”declared Haddad.
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