In the Chamber, Haddad defends cut of tax expenses – 05/17/2023 – Market

The Minister of Finance, Fernando Haddad (PT), said that an important budgetary expense for the trajectory is related to real interest rates and defended that Congress look at tax expenses in search of cuts.

“The estimates are of BRL 740 billion [estimado para 2023]. See what a curiosity, unjustified tax spending increases real interest. It is the imbalance of public accounts promoted by unjustified tax spending that causes the BC to raise interest rates due to the unsustainability of the public debt”, he evaluated in a hearing held this Wednesday (17) in the Chamber of Deputies.

According to the minister, these expenses added to the BRL 600 billion in tax expenses should be in the sights of Congress to see where it is possible to cut.

“Unjustified tax spending is being cut and this will allow budget balance and interest reduction”, he opined.

Haddad made the considerations in response to questions from opposition deputies in relation to BC (Central Bank) and to President Luiz Inácio Lula da Silva’s (PT) criticism of BC President Roberto Campos Neto.

“Big businessmen are having this debate, are they disrespecting the bank’s autonomy? No, they are pondering the concrete reality of the businessman, the worker. That’s what democracy is, being able to speak, express an opinion”, said Haddad.

He also stated that interest rates reached 13.75% because of former President Jair Bolsonaro’s (PL) spending in the election and that the PT government has begun to correct the “fiscal confusion”

Thus, continued Haddad, there would be, in his opinion, “with the measures taken so far, there is room for a gesture of more confidence without mishap for inflation. This should not offend anyone”.