Authorized by Lula, Fernando Haddad has finally started to serve external audiences with the new rule for controlling public expenses that will replace the spending cap. In the heart of the picanha there is a concept that appeals to lovers of the delights of fiscal responsibility: public spending will always grow less than government revenues, being limited to 70% of the advance in collection.
Chained to this concept, the Minister of Finance proposes that the public deficit be zeroed in the year 2024. in 2026. In this format, the proposal was closer to the taste of the so-called fiscalists of the economic team than to the taste of the PT’s pointers and the developmentalists of the BNDES.
That is: despite the punches and scratches, Haddad won the first round of the fiscal conflict. The fight is just beginning. It is now necessary to eliminate doubts. For example: What if Congress overestimates revenues when drafting the Budget? How to prevent permanent expenses from being based on variable and temporary income? Then comes the congressional voting battle. Finally, Haddad will have to transpose responsibility from paper to practice.
Lula learned in previous terms that investments in social programs and infrastructure works depend on balancing accounts. So far, his government has dedicated itself to complaining about the storms inherited from Bolsonaro. With a delay, he began to inform where he plans to lead the ship. The management of the economy is also made of expectations. Optimists hope for the best. Pessimists prepare for the worst. And Lula will take advantage of the picanha he is able to deliver in the 2026 succession.
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