Image credits: José Cruz/Agência Brasil

ANALYSIS: Fiscal project has just started in its infancy

There is still a long way to go before we know what the real impact of the bill for the new fiscal framework for Brazilian public accounts forwarded yesterday by the federal government to Congress will be.

The document brought exceptions to the spending limit, which frustrated some analysts and market agents. Members of the government and the PT reinforced pressure on the Central Bank to reduce the basic interest rate, the Selic, in light of the document.

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But the project must be approved by congressmen, who can change it. A wing of PT parliamentarians considers the project too severe in controlling spending. After approval of the proposal, it will be necessary to monitor with a magnifying glass how its implementation will be carried out.

History shows that it is in the implementation of measures that the greatest danger of slips lies. Especially when they refer to controlling expenses. Too early to celebrate.

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