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Tebet does not rule out changing targets for 2024 and 2025 and says revenue increase is ‘exhausting’

The minister says, however, that he does not yet have the definitive numbers on the revenue projection to say whether the target will be maintained or not

BRASILIA – The Minister of Planning, Simone Tebethe said on Tuesday 2, that he does not yet have the definitive numbers on the revenue projection to say whether or not the government will be able to maintain the objective of creating a surplus (positive balance) of 0.5% of GDP in 2025.

The expectation is that the data will be delivered by the Treasury to Planning between today and tomorrow, he commented. The fiscal target must be proposed in the bill Budget Guidelines (PLDO)to be sent to Congress on April 15.

“What can I say, that’s what Haddad already said – is that the discussion on the objectives for 2024 and 2025 is on the table, the re-discussion”, he stated. When asked if, in addition to the objective for 2025, also this year’s zero deficit objective could be reviewed, Tebet corrected. “No, it is not being rediscussed (the 2024 target); I just said that, in this year’s target, ‘A’ minus ‘B’ must be zero, and we will evaluate it month by month,” the minister told reporters after attending the closing of the International Seminar on good planning Practice in the medium and long term, in Brasilia.

“For now we have a (deficit) equal to 0.1% (of GDP) without a series of issues that we have not included, which we will have to include in the budget in the second (bimonthly) report. By May we will have a real vision of what will happen in 2024?, he said.

“A (revenue) minus B (expenditure) for 2025 must give a surplus of 0.5% (of GDP). If not, we will take this very clearly to the Budget Execution Board (JEO) and say: the numbers don’t match “We will either review the target or not review the target. What will we do? Will we still address the situation? Will we discuss the target again for 2025 and 2026? This is a decision that only the Council will take,” he said.

Also regarding PLDO 2025, Tebet said he hopes to hold a meeting with his team this Friday, the 5th, so that a JEO meeting can be scheduled for next week. “With the numbers closed, we will have the reality at hand, whether or not we can maintain a 0.5% surplus,” he said, noting that while the Ministry of Finance has the revenue numbers, and its The department is responsible for spending data.

“Let’s beat the numbers. Him [Haddad] There’s only one number, I only have one more. This marriage must happen: he has the income, we have the expenses,” she said.

Spending Review

Tebet also confirmed that it will include in the draft budget guidelines law (PLDO) an annex with guidelines for spending review, as demonstrated by Estadão. Tebet stressed that it is necessary to move forward in the budget discussion from an expenditure perspective and said that the alternatives to increase revenue are already “exhausting”.

“The increase in the Brazilian budget from a revenue point of view is already running out, going further would mean increasing taxes. (…) Is there another measure from a revenue point of view? Only the Minister (of Finance, Fernando ) Haddad can say that “I can’t, I can advance if necessary. What we need is the treadmill from an expense perspective. What to cut, how to cut,” Tebet said.

The minister underlined that the annex on the spending review will constitute a guideline for the implementation of the budget and can be revised later. “This (spending review) list does not need to specifically address which or how many (policies); it needs to be a guide as to what we need to do and what spending is squeezing space for discretionary (non-mandatory) spending… with the prediction that if nothing is done, at some point we will no longer have resources for discretionary spending,” he explained.

Discussion on the spending review agenda will be brought to the JEO meeting next week. According to the minister, the idea is that this annex contains a clear analysis of the impact of expenditure on, for example, the sectors of health and education, social security and public employees.

As Estadão demonstrated, the government intends to include in the PLDO 2025 an estimate of the savings with the review of expenses for services linked to the National Institute of Social Security (INSS) and the Agricultural Activities Guarantee Program (Proagro).

Source: Terra

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