{"id":89488,"date":"2024-06-14T13:23:34","date_gmt":"2024-06-14T16:23:34","guid":{"rendered":"https:\/\/murray.adv.br\/?p=89488"},"modified":"2024-06-14T13:23:37","modified_gmt":"2024-06-14T16:23:37","slug":"haddad-advocates-for-comprehensive-review-of-public-spending","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/haddad-advocates-for-comprehensive-review-of-public-spending\/","title":{"rendered":"Haddad advocates for comprehensive review of public spending"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><em><strong>Statement comes amid growing pressure for spending-cut measures<\/strong><\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>14\/06\/\/2024 <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/s2-valorinternational.glbimg.com\/MIDpN-UfxGPd0CC8kIQ8rIDEskw=\/0x0:2000x1333\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/b\/D\/LGWcWrQFWC7H5IxEcE8w\/53789069528-e7d3ea1081-o.jpg\" alt=\"Fernando Haddad and Simone Tebet \u2014 Foto: Diogo Zacarias\/MF\" style=\"width:664px;height:auto\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>Fernando Haddad and Simone Tebet \u2014 Foto: Diogo Zacarias\/MF<\/em><\/p>\n\n\n\n<p>Finance Minister Fernando Haddad said on Thursday that it is essential to intensify studies on the review of public spending. According to Mr. Haddad, \u201cprimary spending needs to be reviewed, tax spending needs to be reviewed, and the Central Bank\u2019s financial spending as well.\u201d He also mentioned that the economic team set in motion a \u201ccomprehensive, general, and unrestricted\u201d review of expenses.<\/p>\n\n\n\n<p>Mr. Haddad unexpectedly commented on the matter alongside Planning Minister Simone Tebet after a last-minute meeting at the Ministry of Finance amidst financial market tensions due to concerns that he could be losing ground within the Lula administration and uncertainty about the progress of the government\u2019s economic agenda following the Senate\u2019s rejection of a provisional presidential decree on social taxes PIS\/Cofins this week.<\/p>\n\n\n\n<p>The statement was in response to demands for spending-cut measures, as there is a perception among market agents and experts that the fiscal agenda on the revenue side is exhausted.<\/p>\n\n\n\n<p>Shortly after the meeting, in the early afternoon, the finance minister said that he had started discussions with Ms. Tebet on the 2025 Budget and that the public spending review agenda \u201cis gaining more traction over time.\u201d \u201cSimone [Tebet] and I are talking more and more about this,\u201d he said.<\/p>\n\n\n\n<p>The minister\u2019s statement to the press caused the foreign exchange and interest rates to fall and the Ibovespa, Brazil\u2019s benchmark stock index, to recover losses partly. Despite the statements, economists remain skeptical about the possibilities of concrete progress on these proposals.<\/p>\n\n\n\n<p>\u201cWe asked for an intensification of efforts so that by the end of June we can have clarity on the 2025 Budget, structurally well-constructed to provide reassurance on addressing the country\u2019s fiscal issues,\u201d Mr. Haddad said.<\/p>\n\n\n\n<p>According to the minister, there will be a \u201cmore intense pace\u201d of work this month, as the budget proposal needs to be sent to Congress by August 31. Although he did not specify which types of spending are being structurally analyzed by the economic team, he mentioned that the review aims to accommodate the \u201clegitimate aspirations\u201d of Congress and the Executive branch, \u201cespecially so that we can have peace of mind next year.\u201d<\/p>\n\n\n\n<p>The minister noted that any proposals for public spending review that require legislation need to be approved this year to impact 2025.<\/p>\n\n\n\n<p>\u201cCongress is willing to move forward, willing to review primary spending and cut privileges. Topics discussed like super salaries, correction of benefits practiced against the law, and improvement of records are back on the table. We think this is great; it facilitates the work of balancing the accounts.\u201d<\/p>\n\n\n\n<p>On Wednesday, domestic assets were hit by another round of deterioration after President Lula cited increased revenue and lower interest rates as a recipe for fiscal balance\u2014without mentioning spending cuts or the rejection of the provisional presidential decree.<\/p>\n\n\n\n<p>When asked about Ms. Tebet\u2019s remarks on detaching the minimum wage from benefits such as unemployment insurance and the Continuous Cash Benefit (BPC, for very poor elders and disabled people), Mr. Haddad said that the position is the \u201ceconomic team\u2019s,\u201d claiming that they are \u201cin sync.\u201d<\/p>\n\n\n\n<p>\u201cAlthough the Ministry of Finance deals more with revenue and the Ministry of Planning with spending, we are not exchanging views on the feasibility of the proposals all the time. Everything that can be done on both sides helps.\u201d<\/p>\n\n\n\n<p>The population, the minister said, needs to continue to have their fundamental rights met, as well as investment happening \u201cto improve the productivity of the Brazilian economy.\u201d<\/p>\n\n\n\n<p>Following this, Ms. Tebet reiterated that the economic team has \u201cplans A, B, C, D, E\u201d for the spending review but noted that the review of constitutional floors for education and health are \u201ctowards the end of the alphabet in the menu.\u201d This \u201cmenu,\u201d she said, has not yet been presented to President Lula.<\/p>\n\n\n\n<p>Ms. Tebet also said it is necessary to forget the word \u201cpension\u201d in discussions about detaching the minimum wage, referring to retirement. \u201cEven I don\u2019t agree with that,\u201d she responded when questioned.<\/p>\n\n\n\n<p>The minister has opposed detaching pensions from the minimum wage but supports studying the delinking of other benefits. According to her, this is an agenda that is \u201cmid-alphabet,\u201d referring to the plans and possibilities studied by the economic team.<\/p>\n\n\n\n<p>According to Ms. Tebet, social security spending is increasing sharply, but the solution is not a new pension reform. \u201cThe problem lies in social security exemptions that affect tax spending. Solving tax spending problems means not creating new tax exemptions in the country, as pointed out by the public spending watchdog in the government\u2019s 2023 accounts report, approved on Wednesday,\u201d she said.<\/p>\n\n\n\n<p>The planning minister also noted that there are several filters before a proposal can prosper. \u201cHaddad has to agree with the Ministry of Planning\u2019s proposals, and vice versa, otherwise we won\u2019t move forward.\u201d<\/p>\n\n\n\n<p>*Por Guilherme Pimenta, Gabriela Pereira\u00a0\u2014 Bras\u00edlia<\/p>\n\n\n\n<p>Source: Valor International<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Statement comes amid growing pressure for spending-cut measures 14\/06\/\/2024 Fernando Haddad and Simone Tebet \u2014 Foto: Diogo Zacarias\/MF Finance Minister Fernando Haddad said on Thursday that it is essential to intensify studies on the review of public spending. According to Mr. Haddad, \u201cprimary spending needs to be reviewed, tax spending needs to be reviewed, and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[25160,25159],"class_list":["post-89488","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-haddad-advocates","tag-review-of-public-spending"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Haddad advocates for comprehensive review of public spending - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/haddad-advocates-for-comprehensive-review-of-public-spending\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Haddad advocates for comprehensive review of public spending - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Statement comes amid growing pressure for spending-cut measures 14\/06\/\/2024 Fernando Haddad and Simone Tebet \u2014 Foto: Diogo Zacarias\/MF Finance Minister Fernando Haddad said on Thursday that it is essential to intensify studies on the review of public spending. 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