Haddad says details are missing to announce tax rule – 03/20/2023 – Market

Minister Fernando Haddad (Finance) said this Monday (20) that “details” are missing for the announcement of the new fiscal rule and that he is considering launching new rules for PPPs (Public-Private Partnerships) along with the framework that will replace the ceiling of expenses.

“I have a decision that needs to be taken, it has a regulatory framework, it has nothing to do with the fiscal framework, on investments, which we are finalizing here at the Farm. There is a doubt whether to launch it together or not [com a regra fiscal]about the PPPs, it makes no difference to me if they launch together or not, it could be one ceremony, it could be two”, he said.

“But it is an important thing to leverage investment at a time when Brazil is in need of investment,” he added.

Another point still under discussion, according to the minister, concerns the parameters of the fiscal framework. “There is an account on institutional linkages that we are also doing to be sure about the parameters”, he said.

In a seminar promoted by the BNDES (National Bank for Economic and Social Development), vice-president Geraldo Alckmin, who is also the minister of Development, Industry, Commerce and Services, said earlier this Monday that the new fiscal rule to be presented by the government it must combine the public debt curve, primary surplus and an expenditure control mechanism.

According to Alckmin, President Luiz Inácio Lula da Silva (PT) has not yet given the final word on the proposal. Haddad, however, said he is confident that the discussion is in the final stretch. This Monday, the minister held “prior preparatory meetings” on the subject with the presidents of the Senate, Rodrigo Pacheco (PSD-MG), and of the Chamber of Deputies, Arthur Lira (PP-AL).

The head of the Treasury also discussed the design of the fiscal rule with federal deputy José Guimarães (PT-CE), leader of the government in the Chamber, and with senator Jaques Wagner (PT-BA), leader of the government in the Senate.

Haddad received guidance from President Lula in a meeting held at the Planalto Palace last Friday (17), as anticipated by the Sheet.

“Following the schedule, I stayed to speak with the leaders of the House and Senate and with the presidents of both Houses, we exposed the general lines of the framework that will be announced by the President of the Republic. I think that the reception of both the leaders and the presidents was very good, just like it was from the ministers on Friday, who got to know the framework at the meeting with the president”, he said. “We are confident that we are in the final stage.”

After the meeting with Haddad, Pacheco said on social networks that he received the general lines of the proposed new fiscal framework and defended that a “wide discussion” be promoted in Congress.

“In order to ensure the investments that need to be made in the areas of health, education, security and infrastructure, in addition to social projects, but without neglecting the sustainability of public accounts”, he wrote.

The leader of the government in the Chamber of Deputies said that Lira should organize a meeting between Haddad and the leaders of the House later this week, “at any time”.

“This is all the fiscal framework that he is articulating with us. The meeting with the leaders [será] probably this week. It’s all well underway. Everything is consolidating on a path, which is good for Brazil”, said José Guimarães.

The minister also said that he will try to speak with Lula this Monday to “give feedback” on “what he heard” on the subject. Asked if he received suggestions from the heads of the Legislature, he only replied “no”, without giving details.

Earlier, Haddad stated that the president still intends to announce the design of the new fiscal rule before his trip to China, scheduled for the 25th.

According to the head of the Treasury, the disclosure of the new fiscal rule was brought forward to March so that the PLDO (Budget Guidelines Bill) is forwarded to the National Congress already based on the new fiscal rule.

The LDO project must be sent to the Executive for Congress by April 15 of each year, and be returned for sanction by July 17 of the same year.

According to Haddad, the economic area is giving Lula “all possible subsidies” so that the president’s decision contemplates his historic commitments, his campaign promises and also guarantees the sustainability of public accounts.