Tax rule should not be sent together with PPP framework, says Minister of the Civil House – 03/22/2023 – Market

Minister Rui Costa (Casa Civil) said this Wednesday (22) that the government will work to send the new legislation on PPPs (Public Private Partnerships) as soon as possible, but that it should not be sent to the National Congress together to the tax rule.

“Not together, they are different things. I would say that we are going to work to send as soon as possible [a nova regulação sobre as PPPs]”, he said, when asked if both texts should be sent together to the Legislature.

On Monday (20), Minister Fernando Haddad stated that there was doubt as to whether the fiscal rule would be launched together with the new framework for PPPs. “It doesn’t matter to me if it’s released together or not, it could be a ceremony, it could be two”, said Haddad on Monday.

According to Rui, the new PPP model will be linked to the new PAC that the government will launch, in April, of investment programs.

“These investments will include investments that the federal government will be financing, through BNDES, development banks, and also concession and PPP projects”, he said.

“We are aligning, in partnership with the Treasury, the structuring of the federal PPP plan, either to support state PPPs. We already have the PPI structure, but we want to go further by sharing the guarantee fund with the states in selected projects. leverage investment without compromising the general budget of the Union and expanding a lot”, he said.

This Wednesday, Rui Costa minimized the delay in completing the fiscal rule project that the government is preparing and said that it will be sent to Congress by April 15, the maximum deadline for sending the LDO (Budget Guidelines Law).

According to him, now it remains to “transform the conception into text” and that Haddad seeks to mature the text together with other sectors of politics and the economy so that it is approved when sent to Congress.

“This, with absolute conviction, can reduce processing time as the group of actors is listened to and you prepare. Also because we are talking about a few days. The LDO has to be sent on April 15, and the LDO has to necessarily translate the concept and guidelines of the new fiscal framework because the budget will be prepared based on this LDO”, said Costa.

The government’s initial forecast, expressed by the Minister of Finance, was to present the text of the fiscal rule this week, but the announcement was postponed until after the return of President Luiz Inácio Lula da Silva’s (PT) visit to China, next week. .

“The caution in this case of the framework I think is fully understandable. The Treasury, in my opinion, is to be congratulated for the concept presented. And now it is time to transform the concept into text”, he said.

“The president asked Haddad to carry out this dialogue with the leaders, president of the Senate and the House, which he has already done, with party leaders that he has already had with some, to consolidate and listen to opinions and carry out a process of successive rapprochement “, he said.

Costa stated that the “stretch and pull” around the fiscal framework is necessary for the proposal to be adapted in the best way. For him, “you don’t have to look negatively” on statements like that of the PT president, Gleisi Hoffmann (PR).

Last Saturday (18), the deputy published a message on social networks in which she defended the need to increase public investments, which means that the proposed new fiscal framework should be flexible in relation to certain expenses.

“If it is true that the economy will grow less this year, according to indicators released by the government, then we need to increase public investment and not hold back any social investment. At times like this, fiscal policy has to be countercyclical, expansionist,” he said.