Government needs to cut spending on inefficient programs, says expert

The discussion about cutting government spending should begin by reviewing expenses and the results of public policies. The assessment is by economist Bruno Carazza, associate professor at Fundação Dom Cabral.

“Administrative reform is important [para cortar despesas]but it is not a ‘silver bullet’ for adjustment and its most significant results are in the long term”, he assesses.

For him, it is necessary to go over the spending structure with a fine-tooth comb to reevaluate programs that cost a lot and do not give the expected results. Many of them could be extinguished, merged or remodeled.

“The review should cover everything from income transfer initiatives to spending on parliamentary amendments, which are distributed to states and municipalities without effective monitoring of the results of public policies”, ponders the professor.

A special secretariat was formed within the Ministry of Planning for this function, but the work has not progressed. Minister Simone Tebet had her role reduced, with public loss of power, as in the case of the appointment of the new president of IBGE, Márcio Pochmann, by President Lula.

For Carraza, the secretariat has good experts in the quality of public spending and knows what needs to be done. “But this is of no use if the president does not have the political will to rationalize spending and adjust public accounts,” she says.