‘We are going to zero the deficit from the end of next year’, says Tebet

[ad_1]

The government’s official forecast for 2023 is a deficit of R$ 107.6 billion. New fiscal framework, not yet disclosed, will help zero deficit in 2024, says Minister of Planning. The Minister of Planning and Budget, Simone Tebet, said this Monday (27) that the government will zero out the public accounts deficit as of the end of next year. For this year, the government’s official forecast is for a primary deficit of R$ 107.6 billion. The figure corresponds to the amount that the government must spend above its own collection, even without considering the payment of the public debt – for this, it will be necessary to increase the debt. “Many think that the big challenge is to zero the fiscal deficit. It is not, because we are going to zero the deficit from the end of next year. This is a goal, not only of the Ministry of Planning and Budget, but also of the Ministry of Finance “, said Tebet at an event promoted by Arko Advice. She also commented that the new fiscal framework meets this goal of zeroing the fiscal deficit next year. “The framework meets this desire of ours, because it deals not only with the revenue side, but also with the expenditure side, with an eye on stabilizing the debt/GDP ratio, but not only thinking about increasing revenue without increasing the tax burden , but also in the commitment to zero the deficit.” The minister declined to say whether next year it will be possible to have a surplus in the federal government’s public accounts, that is, revenue exceeding expenditure. “I stop at zeroing in on the deficit. If we’re going to have a surplus or not, I can’t say, I can’t open it because I signed a confidentiality clause, whose fine is one year of a minister’s salary.” Last week, Tebet had already commented on the projection of a deficit greater than R$ 120 billion this year – see below: Tebet estimates a deficit of R$ 120 billion this year Easy-to-understand framework Still on the new fiscal framework, the minister commented that it will be “simple, easy to understand, not only economists will understand, it will be totally transparent and credible”. “The frame of the framework is already ready. The issue of parameters is now in a political discussion with the President of the Republic and it is obvious that this makes all the difference. The parameters that will give sustainability, credibility and conviction that the framework will indeed stabilize the public debt, will zero the fiscal deficit, therefore fiscally responsible and socially committed to Brazil”, he added. She also clarified her statement that the fiscal framework will please everyone, including the market. “It’s not that it’s going to please everyone 100%, but it’s that it’s going to please both sides a little, the government that is more expansionist in public spending, but also with the fiscal responsibility that we are all committed to.” Gerson Camarotti: Debate between political and economic wings delays the fiscal anchor

[ad_2]

Source link