Minister said that achieving the 2024 target depends on agreement with the Minister of Finance, Fernando Haddad
The Minister of Planning and Budget, Simone Tebet, stated this Tuesday (April 2, 2024) that the revision of the fiscal target for the years 2024 and 2025 is under discussion. According to her, the scope of the measure depends on an agreement with the Minister of Finance, Fernando Haddad.
“Haddad has one number and I have another. This marriage needs to happen. He has the income, I have the expenses. Minus B has to be 0 this year.”said Tebet this Tuesday (April 2, 2024), after the International Seminar on Good Practices for Medium and Long Term Planning, at the headquarters of Banco do Brasil, in Brasília.
The government's target is zero deficit for 2024. For 2025, a surplus of 0.5% of GDP (Gross Domestic Product). The minister will meet with the Minister of Finance to discuss the numbers.
By the 4th, the Federal Revenue Service must present revenue data. Based on this information, the minister informed, the data will be more accurate.
If the account does not close, said the Minister of Planning and Budget, the numbers will be taken to the JEO (Budget Execution Board). Only afterwards will there be a discussion about whether or not to maintain the goal. A real scenario for 2024 should occur in May, when the 2nd bimonthly report will be published. However, the numbers need to be re-evaluated monthly.
For 2025, the target will depend on government spending.
“If it doesn’t work, let’s take it to JEO and see if we can face it anyway or let’s discuss the goals”he said.
Cost cutting
According to Tebet, there is no other way than to cut spending. The minister stated that the Brazilian Budget from the perspective of the Federal Revenue Service is running out.
Therefore, if there is an increase in spending and a review of the target, the discussion becomes urgent. “Passing this means raising taxes”he stated.
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