Executive Secretary of the Ministry of Finance explains that priority spending may be impacted by the new fiscal framework.| Photo: Albino Oliveira/Ministry of Finance

The executive secretary of the Ministry of Finance, Gabriel Galípolo, said this Tuesday (30) that the project for the new fiscal framework can “squeeze” spending on education and health to meet the targets set for the coming years.

“The truth is that, the way the rule is, the thing is much tighter than it seems. The problem is the other way around. I think this will come to light quickly and people will understand that the issue we are going to have to face is another: is whether we are willing to squeeze education, health and issues that are priorities for our country”, he said. Galípolo at an event held by Valor Econômico, according to Politics 360.

According to him, the next Budget is “tight and challenging”, which was confirmed shortly afterwards by Minister Simone Tebet, of Planning. According to her, the text of the new fiscal framework did not have “fat” for negotiation in Congress.

“The ceiling that was a ceiling ended up becoming a floor in the possibility of next year’s expenses. So that we can meet the goal in 2024 of zeroing this deficit, we put in a framework that any change impacts in relation to the possibility of expenses”, he added, making an analogy that Minister Fernando Haddad, of the Treasury, threw a “grenade no pin in the lap” due to the “audacious goals”.

The targets, however, are credible and “possible to be achieved in relation to the primary result, which is to try to zero the deficit next year with a flexibility of reaching -0.25%, something around negative BRL 20 billion ”.