Murilo Viana, economist specializing in public accounts, in an interview with CNN stated that the measures that cause a change in ICMS, generate an impact of hundreds of millions of reais in the collection of states and municipalities, which “has a negative impact on public services”.
Within the federal system, states need to allocate 12% of the amount collected to health and 25% to education. “When revenue declines, the [valor] linked to [esses] resources decrease”.
Thus, Viana says that a portion of the poorest population that demand public service may not be assisted.
The economist also declared that the “idea that the government has a ‘full pocket’ is a half-truth”, since in the last two years, the collection “surprised” both at the federal and state levels, partly due to the inflationary level and the rise in commodities, particularly oil.
However, he says that the price cycle fluctuates and, if inflation at a given moment helps in the collection, then it presses contractual readjustments, “giving a rebound effect”.
“Higher inflation impacts interest rates, which affects the growth rate [do país]and cools the collection”.
Source: CNN Brasil