To meet the fiscal target, Haddad says he counts on Congress not to approve new expenses

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Budget proposal for 2024 foresees ‘zero deficit’. To achieve this, the government is counting on increased revenue, but some of the measures still require Congressional approval. The Minister of Finance, Fernando Haddad, stated this Thursday (21) that, to meet the fiscal target, he is counting on Congress “not to approve new expenses and exemptions”. ✅ Click here to follow the new g1 channel on WhatsApp “With the support of Congress, I am sure that we will continue to move in the right direction, in not approving new expenses, not approving new exemptions, and we do what needs to be done to correct the tax distortions that Brazil has accumulated over the last few years”, he said. Haddad made the statement when asked by journalists about the statement published yesterday by the Monetary Policy Committee (Copom). In the document, the committee assessed that the implementation of fiscal targets established by the federal government can contribute to the process of anchoring inflation expectations and to the conduct of monetary policy. Copom cuts the basic interest rate for the 2nd time in a row The same statement brought a reduction in the economy’s basic interest rate, the Selic, from 13.25% per year to 12.75% per year. “Pursuing a fiscal target, as the statement says, is an important thing because it demonstrates the country’s seriousness with public accounts,” said Haddad. On the revenue side, the government also relies on the Legislature. For 2024, the government’s goal is to eliminate the deficit in public accounts – that is, for expenditures to be equivalent to revenues and for the government not to spend more than what is collected. To do this, it will need to increase revenue by another R$168 billion next year. The budget proposal has already included the measures highlighted by the government to boost revenues – such as taxation of offshore companies and exclusive funds –, but part of it still needs to be approved by Congress. This Thursday (21), the Ministry of Finance reported a 4.1% drop in the collection of taxes, contributions and other revenues. It is the third consecutive month in 2023 of real reduction in

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