With planned fiscal measures, the government may have a primary result within the ‘band’ in 2024, says Haddad
A new fiscal framework provides that the target will be considered fulfilled next year if the difference between expenses and revenues is equal to zero or reaches 0.25 percentage points more or less. Haddad details measures to reset the fiscal deficit next year Finance Minister Fernando Haddad (PT) said this Friday (26) that the federal government may reach a primary result in 2024 within the “band” established by the new fiscal framework . Haddad said that, for that to happen, it is necessary to continue applying a series of measures to control the public budget. READ ALSO Car price reduction measure ‘is not a long-term program’, says Haddad More than 30 cars are priced at up to R$ 120 thousand and may become cheaper with government measures; see list Brazilian GDP may grow by 2% in 2023, according to Haddad Project to regulate sports betting will not compensate industry tax relief, says Minister of Finance “If we continue until the end of the year taking all these measures, both those already approved and those that are in process and those that will be forwarded, we can intend, yes, to reach the result within the band already next year”, said the minister. The primary result is the difference between government revenues and expenditures, without considering public debt interest payments. Today, the primary result target is fixed. What the new fiscal framework is now proposing is to create an interval within which this balance between income and expenditure can vary. It is a model similar to the inflation targeting system that we have in Brazil today. The so-called “band” of the primary result will be plus and minus 0.25 percentage points. For 2024, for example, the target is a zero primary result, that is, equal revenues and expenditures. In an interview with GloboNews Mais, the minister also listed the measures he considers important for next year’s result. Among them, proposals already approved and in process. One of them is the Provisional Measure (MP) of the transfer price — presented at the end of Jair Bolsonaro’s (PL) administration, at the request of the current government –, which changes the rules for collecting taxes from companies that transfer goods for partner companies abroad. “The transfer price inhibits a trick by exporters of exporting to a tax haven before the goods reach their destination. It is legislation that is being approved all over the world and that will greatly inhibit this type of expedient, which makes the person pay less taxes in the tax haven than serving the national interest, “he said.