Lira: Haddad ratified that he will pursue zero deficit – 11/06/2023 – Market

The president of the Chamber of Deputies, Arthur Lira (PP-AL), said this Monday (6) that the Minister of Finance, Fernando Haddad, ratified in a meeting that he intends to continue pursuing the goal of zeroing the fiscal deficit in public accounts in 2024.

“As was initially stated in the press, the first impact [da fala de Lula] was that now the world is over”, said Lira during an event at the BTG Pactual bank. “Minister Haddad ratified, in a meeting with us and publicly, that he will continue to pursue zero deficit.”

Last week, Lula (PT) declared, during breakfast with journalists, that the government will “hardly” achieve the goal of zero deficit in public accounts next year. The following week, Haddad said that his goal was maintained.

Before Lira’s statement, Haddad stated, at the same event, that the fiscal result “does not depend on the desire of the President of the Republic” or the economic team, but said that it is “partnership work”.

“I don’t say this to provoke anyone. I say this because the fiscal result is not in the mind of the Minister of Finance nor the desire of the President of the Republic. Fiscal results are a work of partnership”, declared the minister, also defending harmony between the Powers .

The president of the Senate, Rodrigo Pacheco (PSD-MG), also stated at the same event that it is necessary to trust the federal government’s economic team in the face of the existing challenges for the Brazilian economy, but pointed out that Congress will make improvements or reject the proposals that disagree.

“At a time when we have major challenges in resolving Brazil’s economy, in seeking sustainable revenue, we need and must trust the economic team that must provide this direction,” said Pacheco.

The senator once again defended Haddad’s work and stated that he continues to support the “cause” of the goal of zero fiscal deficit next year, highlighting that the Senate will continue debating measures that help sustain federal revenue.

Lula’s statement caused turbulence in the Brazilian market, which, despite doubting the government’s ability to deliver the expected fiscal target, welcomed the economic team’s commitment to resisting to organize public accounts.

Such as Sheet showed, aware that he is losing the debate, Haddad now defends with Lula the March deadline as a limit to assess the fiscal situation and, only then, make a decision on changing next year’s target.

Lira minimized the president’s statement by stating that the fiscal framework — which replaced the spending ceiling — foresees consequences for different primary deficit results. According to him, Congress naturally saw the possibility of changing next year’s target.

Bill on offshore taxation

In his speech at this Monday’s event, Pacheco also pointed out that he hopes that the bill on the taxation of “offshore” and exclusive funds will be approved by the Senate by the end of the year, and anticipated that opinions should be presented next week. on the sports betting taxation project, due to the urgency regime on the matter.

However, Pacheco considered that, after discussing the agendas that increase federal revenue and tax reform, it will be necessary for the Senate to discuss the issue of the quality of public spending and the size of the Brazilian State.

“It is very important that Brazil does not become a state that only collects revenue. Soon after sustaining the fiscal regime and tax reform, we will need to discuss public spending,” he said.