The Finance Minister claims to have been a “promoter of rapprochement” between the president of the Central Bank and the government
BRASILIA-IL Minister of Finance, Fernando Haddadhe said in an interview with CNN that he was responsible for getting closer to the president Central bank, Roberto Campos Netothe government and the president Luiz Inácio Lula da Silva. He also criticized the proposed amendment to the Constitution (PEC) which concerns the autonomy of the EC.
“I was a promoter of Roberto’s approach (Campos Neto) with the government, in general, and with the President of the Republic, in particular”, said the minister. He declared this to CNN, which broadcast an extract of an interview released on the afternoon of Tuesday 26th. The full text was shown this Wednesday.
He believes that a prior conversation is necessary between Campos Neto and Lula on the approval of the PEC of the autonomy of the BC, currently being drawn up in the Senate. “I think it would be appropriate to have a prior conversation with the president, which hasn’t happened. In addition to some provisions of the PEC that I don’t agree with and which are the subject of a more in-depth analysis by those who will discuss the topic, Congress”, he said.
Calm the spirits
Haddad said the role of the Ministry of Finance is to contribute to a good business environment in the country, which includes calming market feelings when it comes to government actions with state-owned companies.
Asked about episodes such as the distribution of Petrobras’ dividends, which culminated in the decision to cede a seat on the board of directors of the state company to the Treasury – which will be occupied by the deputy executive secretary, Rafael Dubeux -, Haddad reiterated that his role is of the Finance team must always act to pacify and clarify, calming things down, but also correcting courses if necessary.
The minister stated that he does not believe that the other powers should be allies of the Executive, but rather “harmonized” to make them permeable to each other.
For him, the country is going through a process of reconstruction and re-education regarding the relationship between the executive, legislative and judicial powers, which directly influence fiscal management. This is because decisions of the Federal Supreme Court, such as the permanent review of the Social Security issue, and tax exemption measures, such as payroll tax relief and the Perse, affect public finances.
Monetary restriction
Haddad also said he does not believe in a worsening of public finance performance in the coming years, but acknowledged that there is a lot of political pressure. This was in response to a question about concerns for 2025 and 2026 regarding the credibility of the fiscal framework and the targets set. “The fiscal stimulus given at the beginning of the government should be gradually replaced by the reduction of monetary restrictions,” he argued.
The minister, however, admitted the possibility that the surplus target for 2025 will not be equal to 0.5% of gross domestic product (GDP), as envisaged in the new fiscal framework. He linked the achievement of the objective to the approval of the agendas of the National Congress, in particular those linked to the Provisional Measure which provided for an allowance for the reduction of payroll tax (MP 1202).
He also considered that it will still take time to understand the fiscal framework, approved in 2023, and its minimum and maximum spending increase bands. “The National Congress has defined that primary spending will fall within this range,” reiterating that no matter how small the revenue this year, or the performance of the economy, there are already defined parameters for spending growth.
Source: Terra
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