Tebet says that for Lula to raise the minimum wage, spending will have to be cut

The Minister of Planning, Simone Tebet, said this Thursday (2nd) that the increase in the minimum wage will depend on spending cuts. Tebet said that when President Luiz Inácio Lula da Silva (PT) determines the increase, the portfolio will show in which areas it is possible to make cuts to pay for the new value.

“When the president says ‘we made a deal’ [para reajustar o piso, seja no valor] of BRL 1,310, BRL 1,315, BRL 1,320, [e perguntar] ‘where could we cut it from?’, I have an obligation to present the painting and say where it fits or not [corte em verba] and where it is a priority, for him to choose [de onde sairá o dinheiro]”, said the minister in an interview with the UOL portal.

This year, the minimum wage floor was set at R$1,302. During the transition, the government team even evaluated the possibility of raising the minimum to R$ 1,320. There is still no forecast for a further increase. Tebet declined to specify which areas could be cut.

The minister stressed that the decision to cut spending to raise the minimum wage will depend on the government’s definition of which public policies will be considered a priority. “I’m not saying it’s difficult. I’m saying that it’s not on my radar right now to find fiscal space, that we’re having a series of other demands. We’re not going to work with the hypothetical, we’re working with reality,” she said.