Finance Minister says there is an effort to comply with the fiscal rule and achieve a zero deficit in 2024
The Minister of Finance, Fernando Haddadsignaled this Monday (1st July 2024) that any contingency will be “of the necessary size” to comply with the new fiscal rule. The values, however, will only be known after the publication of the 3rd Bimonthly Revenue and Expenditure Assessment Report, on July 22.
Haddad also mentioned a “effort” to respect the parameters of the fiscal framework. Here’s what the minister said:
“The fiscal framework must be complied with. It [contingenciamento] It will be the size necessary for our goals to be achieved both from the point of view of expenditure, which has a ceiling, and from the point of view of revenue so that we come within the band of the 2024 goal. This is our effort.”
The mechanism that replaces the spending cap defines a tolerance range of 0.25 pp (percentage point) of GDP (Gross Domestic Product) for the primary balance annually. For 2024, the government has set a target of zero deficit.
The payroll tax relief for 17 sectors of the economy and municipalities and the state of emergency in Rio Grande do Sul are issues that, according to the minister, have an impact on the balance of public accounts.
“Even considering these setbacks, I remain optimistic about the end of the semester. The issue of tax relief and the issue of Rio Grande do Sul, which have an impact. It is not having enough of an impact for us, at this moment, not to aim for the initial goals of the year”, declared.
#Haddad #rule #contingency #size