Text will be taken to Congress until Tuesday (April 18); president traveled to China and the United Arab Emirates to attract investment
The president Luiz Inacio Lula da Silva (PT) returned from a trip to Asia this Sunday night (16.Apr.2023). During the week, the head of the Brazilian Executive should prioritize sending the new fiscal rule to Congress.
This is the main issue involving the government’s economic team in recent days. The expectation is that the text will be forwarded to the Legislature by Tuesday (April 18).
Lula should take advantage of the meeting with congressmen that aims to discuss measures against violence in schools to deliver the proposal. The meeting is scheduled for Tuesday (April 18). Before, the minister Simone Tebet (Planning) signaled that the new fiscal framework would be sent to Congress on Monday (April 17).
The project is the government’s big bet to try to balance public accounts and will replace the spending cap.
Next to Tebet, the minister Fernando Haddad (Finance) introduced the new tax rule on March 30. The device limits the increase in expenses to 70% of the previous year’s net primary revenue growth.
If the public accounts result is lower than expected, there will be a reduction from 70% to 50% in the expenditure growth limit. The new tax rule will contribute to “regain credibility trajectory”according to Haddad.
The new fiscal framework establishes a commitment to an upward trajectory of the primary result until 2026, with an increase of 0.5 percentage points per year. Estimates to zero the deficit of public accounts in 2024 and record surplus again from 2025 (of 0.5%) and 2026 (1%).
EN contained
Congressmen from the acronym defend reducing some obstacles of the new rule to ensure more investments, as Lula promised during the presidential campaign. O Power360 found, however, that they should not raise their tone in public.
The unison speech, at least for now, is to justify the proposal. mention “social and fiscal responsibility”.
squid in asia
The president fulfilled a series of commitments in China between April 13th and 14th. The entourage led by him had at least 73 people.
The central objective of the trip by the Brazilian chief executive was to restore diplomatic and political relations with the government of Xi Jinping. In addition, its mission was to attract investments from Brazil’s largest trading partner and the 2nd largest economy in the world.
During the meeting, the two countries signed 15 agreements on trade, technology and agribusiness.
On Saturday (April 15), Lula went to the United Arab Emirates with a similar purpose. After the trip, the president said that Brazil’s agreements with the two countries total R$62 billion.
The estimate is from the Ministry of Finance. However, neither the Chief Executive nor the body detailed how much of that amount goes to each of the pacts.
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