Haddad talks about fiscal balance in the medium term – 03/19/2024 – Market

Minister Fernando Haddad (Finance) stated this Monday (18) that the new fiscal framework places Brazil on a path of fiscal balance in the medium term and that “nobody does magic” in this process of restructuring public accounts.

“We are facing a new fiscal framework that, judging by the analysis of the main international organizations, including risk agencies, puts this country on a path of balance in the medium term, because no one is doing any magic to put the country on a path of balance either, after everything we’ve experienced in recent years”, said Haddad during an event organized by Esfera Brasil and MBCBrasil.

The head of the Treasury said that the economic team is working to anticipate results expected in the tax reform, highlighting that it is not possible to wait until 2032. The implementation of the new VAT (Additional Value Tax) will be carried out from 2026, but the full migration to The new tax model will only happen in 2033.

“Starting next month, we will finish sending the complementary law, regulating the reform. […] In 2026 the transition begins, which lasts until 2032, and all care in this transition is necessary so that we can complete [esse processo] successfully”, said Haddad.

The head of the economic team also commented that the country is divided and called for unity. “This is not good for Brazil, we have been divided for ten years, we have to unite around a big dream and realize the dream that so many Brazilians want, a fair, supportive country, with progress and inequality”, he said .

Also participating in the opening panel were vice-president Geraldo Alckmin, who is also minister of Mdic (Ministry of Development, Industry, Commerce and Services), Aloizio Mercadante, president of BNDES (National Bank for Economic and Social Development) and Paulo Pimenta, current head of Secom (Secretariat of Social Communication) of the Presidency.

At the event, a study was presented on the socioeconomic impacts of the energy transition in transport in Brazil, entitled “More Efficient Technological Trajectories for the Decarbonization of Mobility”, prepared by LCA Consultoria and MTempo Capital.

The sustainability agenda is one of Haddad’s priorities, who launched the Ecological Transformation Plan. As he showed the Sheetthe National Treasury intends to expand the issuance of sustainable bonds in the international market and is studying the feasibility of launching the first green paper (also called green bonds) in the domestic market.