New fiscal rule seeks to remedy deficiencies of previous rules, says Haddad

In the printing collective at this fifth fair (30), the Minister of Finance, Fernando Haddad, affirmed that the new fiscal remuneration aims to correct deficiencies identified in previous remunerations.

“Over time, we will have some changes in tax revenue and the last one, or all of the expenses, will be replaced today by a revenue that seeks to heal or that we identify as deficiencies of previous revenues,” said the minister.

“Na regra that has validity at the level of expenses, has a primary surplus goal, but it does not have an anticyclical dimension, it does not give to correct. When the country prospered too much, to comply with the law, it was enough to keep despesa in compasso with the recipe that the primary result was reserved. And it was very difficult to reverse this in a bad phase for not having a previous poupança.”

Haddad presents the new tax return in this farm, next to the Minister of Planning, Simone Tebet, and two secretaries Gabriel Galípolo, Rogério Ceron and Guilherme Mello. How do you go to CNNpurposely used as a basis or control of spending and primary surplus.

The new fiscal rule provides that government spending cannot grow above 70% of the revenue growth. With this, the advance of the sales depends directly on the increase in the revenue.

The plane still sets primary surplus targets. The idea is that the government has a zero primary deficit in 2024, a surplus of 0.5% of the Gross Domestic Product (GDP) in 2025 and 1% in 2026.