Proposed new framework in Brazil is ambitious and meets social needs, says IMF director

Nigel Chalk said he was ‘impressed’ with the fiscal adjustment proposed by the Lula government for the medium term

WASHINGTON – The Deputy Director of the Western Hemisphere Department of the International Monetary Fund (IMF) and chief of mission for the United States, Nigel Chalkstated that the proposal for a new tax framework Brazilian market is positive in the medium term and brings ambitious targets for the budget of the Brazilian government. In addition, the rules, which still depend on approval, also address social needs, which is important, in his view.

“It is good that Brazilians are thinking about a fiscal structure, an institutional structure for fiscal policy… We are very impressed with the fiscal adjustment proposed for the medium term, in the sense of increasing the primary result”, evaluated Chalk, in a press conference. press release this afternoon. “This will allow for a good balance,” he added.

Although “ambitious”, the new framework considers the country’s social needs, according to him. “I think it’s very important to balance those two things,” he said.

“The ideas are still evolving over there. We saw some proposals, we are analyzing them”, reinforced Chalk. According to him, the IMF is in contact with the Brazilian government and should visit the country next month, when it hopes to have more information about the new Brazilian framework.

Chalk also reinforced the IMF’s warning that interest rates in the Western Hemisphere remain high this year and in parts of the next as a way to combat inflation and prevent it from taking root in economies. “This will guide inflation back to the target by the end of 2024 or the beginning of 2025?, he evaluated.

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