Real growth in spending on education and health may be limited to 2.5%, as is foreseen in the fiscal framework for other expenses
The Minister of Finance, Fernando Haddadsaid this Tuesday (June 11, 2024) that the government will take “some proposals” of budget changes to the president Luiz Inácio Lula da Silva (PT). He was asked about the study that limits the real growth of health and education floors to 2.5%.
The measure is being analyzed by the technical area of the Ministry of Finance and was published by the media. The real growth of the education and health floors would have the same rule provided for in the fiscal framework, which limits the expansion of spending to real growth of 2.5%.
“There are several scenarios that are being discussed by the technical areas, but have not yet been taken up for consideration by President Lula”said Haddad. “During the Budget discussion, we will take some proposals to the president, who may or may not accept it, depending on his assessment”he completed.
Haddad denied that there are losses to the areas. “It’s not about this. No one has a loss. We recompose”, he declared.
The government has been pressured by Congress to present measures that reduce public spending. Analysts have criticized the government and say that the fiscal adjustment has been made solely to increase revenue.
The health floor is 15% of the government’s RCL (net current revenue), while the education floor is 18% of the RLI (net tax revenue). Both have an increase above other Budget expenses, which are limited to real growth of 2.5%. The Ministry of Finance must face barriers for proposing changes to the floors in an election year.
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