LDO rapporteur says he has “pity” for Haddad for zero deficit target in 2024

The rapporteur of the Budget Guidelines Law (LDO) of 2024, federal deputy Danilo Forte (União-CE), said he had “pity” for the Minister of Finance, Fernando Haddad, for establishing a target of zero deficit in public accounts next year . The parliamentarian considers the objective “almost impossible” given the “huge amount of public spending”. The deputy participated in a public hearing on the LDO at the Legislative Assembly of Rio de Janeiro (Alerj).

“We are arriving at a difficult time of insolvency, even from a fiscal point of view. One person I feel sorry for in Brazil is Haddad, because he makes a speech about a zero fiscal target, but everyone knows that a zero fiscal target is almost impossible in a difficult economic situation, and even more so with this enormous amount of public spending,” said Forte , reported the Estadão.

Haddad sent Congress a series of measures to increase government revenue in an attempt to meet the target, such as changing the taxation of exclusive funds. However, the minister himself has already acknowledged that the government may have “difficulty” meeting the target of zeroing the primary deficit next year.

“We are not denying the challenge. We are not denying the difficulty. What we are affirming is our commitment in the economic area to obtain the best possible result, obviously taking into account the opinion of the National Congress, which has the last word on this topic”, said Haddad on August 31st.

“We cannot arbitrate tax increases on legal entities because they are already heavily penalized. Brazil has lost international competitiveness very quickly”, stated the rapporteur. The government is seeking R$168 billion in extra revenue, which is conditional on the approval of measures by Congress, to be able to eliminate the primary deficit next year.

“The government is desperate to collect and raise taxes in any way to increase revenue. But it is very difficult for the Chamber, which is reformist and conservative in economic terms, to embark on this agenda”, added Forte.