According to the Ministry, the goal of deficit reduction plan is to reduce public spending from 2,3% to 0,5% and 1% of the Gross Domestic Product (GDP). Haddad he also commented that the main objective of the measures is to close 2023 with a negative balance of between 90 and 100 billion reais, instead of the current 231,5 billion reais.
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“There are a series of things that, due to the disorganization of administrative processes over the last four years, are difficult to predict (…) Now, I can deliver a deficit of less than 1% of GDP”, Haddad pointed out.
For Haddad, the measure to exempt federal taxes on federal fuels was electoral on the part of former president Bolsonaro
Haddad stated that the former president Jair Bolsonaro acted for electoral purposes and harmed public finances. According to the minister, Bolsonaro provoked “a series of very irresponsible measures without considering the consequences for the near future”.
Bolsonaro's performance was highlighted by the minister due to the exemption from federal taxes on fuel, a measure taken during the electoral race. The former president's measure expired on December 31, but was extended by Squid until the end of February.
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“The exemption will end in February (…) This does not prevent the President of the Republic from reevaluating these prices, depending on the political assessment he makes, in the direction of pacifying this country”, he added Haddad.
To end the primary deficit, the Lula government still promeYou have an incentive program to settle debts owed by companies and taxpayers to the IRS, in addition to reviewing contracts.
(with AFP)
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