Time is running out to do the necessary calculations to set a feasible goal, says Haddad – 04/08/2024 – Market

Minister Fernando Haddad (Finance) said this Monday (8) that the Luiz Inácio Lula da Silva (PT) government’s time to define a “feasible” fiscal target for 2025 is running out and spoke of insecurity related to projects still in progress. processing in the National Congress.

“We are running out of time to do the necessary calculations to set a target [fiscal] feasible in light of what has happened over the past year. Let’s remember that this target was announced in March last year, when the fiscal framework was presented,” he said.

“Since then, a lot of good things have happened, but we have had some setbacks that will have to be considered and we still have some insecurity regarding the final result of this semester’s negotiations in relation to important topics”, he added.

For next year, the objective indicated in the new fiscal framework was a surplus of 0.5% of GDP. The government, however, is considering setting the 2025 fiscal target at a level between 0% and 0.25% of GDP (Gross Domestic Product), as shown in the Sheet.

The definition needs to be made by next Monday (15), when the PLDO (Budget Guidelines Bill), a document that establishes the basis for next year’s Budget, will be sent to the National Congress.

According to Haddad, the main objective of the Treasury is to ensure the sustainability trajectory of public accounts.

“What’s the point of having a positive primary result? [por] a year and it is unsustainable? […] We are trying to do something with the sustainability of accounts in mind”, he stated.