Image credits: Marcello Casal JrAgência Brasil

“They said we broke the roof. This is fake news”, says Paulo Guedes

The Minister of Economy, Paulo Guedes, stated this Wednesday, 28th, during his participation in the Pânico program, that the spending ceiling impeded the government's economic growth. According to him, the statements that the tax rule was disrespected are fake news. "They said we broke the ceiling. That's fake news. The ceiling was for the government not to grow and we weren't growing," he said. According to Guedes, the spending ceiling was an unfinished work, a house without walls, with the floor compressing the ceiling with the increase in expenses.

The Economy Minister also argued that Congress needs to resume the public budget. “We did in times of war what politicians do not do in times of peace. The political class keeps 96% of the budget stamped and fights for 4%,” he said.

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Despite the criticism, Guedes declared that he never received any inappropriate proposal. “I haven’t seen any indecent proposal from the government, whether it happens underground is another matter,” he declared.

Economic growth of Lula's governments

The Minister of Economy also stated that the economic growth of former president Luiz Inácio Lula da Silva's two terms occurred in the wake of the stabilization achieved by the country through the Real Plan. According to him, Lula had his merits for including the most needy in the public budget, through Bolsa Família, but the Bolsonaro administration increased spending on social benefits from 0,4% of the Gross Domestic Product (GDP) to 1,5%.

“Lula managed to grow in the wake of the previous stabilization, but the gas soon ran out,” said Guedes.

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The minister also criticized judicial decisions, journalistic articles and policy decisions that, according to him, are taken outside the four lines. “When a STF judge leaves the four lines, he disqualifies the Supreme Court. I also, from time to time, slip up. The noise of politics has drowned out economic reality,” he declared.

Guedes also once again stated that the Central Bank (BC) raised interest rates correctly to combat inflation, but the rate should fall next year.

Questionadvancement of laws and research

The Minister of Economy still questionor whether or not the laws work in Brazil, given that the former president is a candidate for the Presidency of the Republic in 2022. QuestionWhen asked about the possibility of a person who was arrested being a candidate, Guedes stated that the system needs to be changed. “Arresting and being eligible, does the right work or doesn’t it work? I don’t personally condemn A, B or C, we have to change the system,” he said.

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He once again stated that the level of corruption “collapsed” during the Jair Bolsonaro government. According to him, if corruption cases exist, they occur in the basements of Brasília. “If there is corruption in 20% of the secret budget, it is R$3 billion. Systemic corruption has collapsed,” he said.

The head of the economic team also questionor some parameters used in electoral research, such as the 2010 Census. “In research there are parameters. They use the 2010 Census. It changes parameters, giving victory to the other side”, he said.

Guedes also declared that to take Brazil off the growth path, the next president needs to do a lot of stupid things. “If there were a fiscal bomb, which there isn’t, the liquidity reserve would be double,” he declared.

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Ideologies

The Economy Minister also stated that the war of ideologies divides people. According to him, the ideal is for there to be tolerance between divergent thoughts. “I don’t like dictatorships, I’m a democrat, I ended up in Chile to teach. Ideology divides people and the ideal is for us to have tolerance towards each other,” he said.

Guedes also stated that the government is a victim of “totally falsified” political narratives. According to him, one of them is that Brazil does not grow during the government. “Brazil grew less than the world average 30 years ago, not now,” he said.

According to the minister, Brazil is expected to grow more than China in 2022, something that has not happened in 42 years.

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(with Estadão Content)

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