In an interview with Live CNN Brasil the president of Insper Marcos Lisboa assessed that, before discussing the hole in the spending ceiling In the name of the country’s social problems, there is a more urgent issue to be addressed: the “dysfunctionality” of public spending dynamics.
“We have a problem before the spending ceiling, which is the dysfunctional dynamics of public spending in Brazil. In general, if there is a social problem leading the discussion, and then, when approving the program, a series of public resources destined for private sectors that are not related to the social question comes in the wake”, he commented this Friday (18 ).
“Once that expense happens, it becomes permanent. Brazil has an expensive State and a high tax burden for an emerging country, while delivering low-quality public services.”
In the economist’s view, the misallocation of resources by the State means that the social area is always in deficit, creating a perennial cycle in which “an important part of the money does not go correctly to the most vulnerable”.
“The ceiling was created to stop dysfunctional spending. The discussion should be as follows: ‘Do you want to increase social spending? Excellent! What are we going to cut?’ But you never cut anything, leave everything as it is and increase spending even more, but there are a number of things that do not work, such as tax benefits for the private sector, and so on.”
Check out the full interview in the video above.
Source: CNN Brasil
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