Fiscal target can be changed, admits Ministry of Finance

The Ministry of Finance admits changing the target of zero fiscal deficit for this year if alternatives are exhausted to compensate for the loss of revenue with the extension of the payroll tax exemption until 2027.

Congress approved the extension of payroll tax relief, which was vetoed by Lula. On December 14, Lula’s decision was rejected by the Legislature and on the 29th, the government published the MP that regulates the end of the exemption.

According to “Folha de S. Paulo”, in order not to make changes to the fiscal deficit target, the economic team defends the gradual re-encumbrance of the payroll. She does not rule out going to court if the provisional measure on the issue is overturned by Congress.

The economic team has another trick up its sleeve: implementing more measures to avoid the loss of revenue and reinforce the Union’s cash flow this year. “If new measures are not possible, the target will eventually have to be changed,” said the executive secretary of Finance, Dario Durigan to the São Paulo newspaper.