The Minister of Economy Paulo Guedes was present at the 10th Entrepreneur Fair, held this Tuesday (1st) by Sebrae in Rio de Janeiro. Guedes attributed the GDP growth to structural reforms approved by the federal government.
Among the reforms, the minister mentioned improvements in the electricity and telecommunications sectors, in addition to basic sanitation, pension reform and the promotion of independence from the Central Bank.
“When you do this series of reforms, you trigger these waves of long-term investment. So, Brazil is doomed to grow,” said the minister in an interview.
The Brazilian GDP had the 7th largest growth in the world, with an increase of 1.2% in the 2nd quarter of this year. In the 1st quarter, Brazil returned to the ranking of the 10 countries with the largest economy in the world.
Guedes defended that the Brazilian GDP would be reaching growth of up to 4% “if it weren’t for the interest rates that have the handbrake correctly pulled to stop inflation”. Optimistic, the minister predicts low inflation for next year.
The Central Bank determined a 0.5 point increase in the Selic in August, closing the rate at 13.75%, the 5th increase in 2022.
Budget for Aid Brazil in 2023
Asked what would guarantee the payment of Auxílio Brasil for next year, Guedes said that this depends on a “political decision”. “We put in R$600 first. Then the disease [Covid-19] it was retreating and went down to R$ 400; then inflation went up, there was a political imperative, everyone complaining that they were in this difficult situation, that the most fragile were unprotected, and what did we do? In terms of fiscal responsibility, that is, generating a surplus this year, we were able to pay BRL 600″, he said, highlighting the BRL 69 million revenue forecast with the approval of the Chamber of Deputies for taxes on dividend income.
The 2023 budget provides for financial assistance of BRL 400, but the government cites efforts to maintain the amount at BRL 600. With the implementation of taxes, the minister says it is possible to readjust the income tax table and the distribution of revenue to the aid, in addition to the financial support obtained by the favorable vote of the Chamber for the taxation of the super rich.
To approve the continuity of the R$ 600 value of the aid until December 2022, Congress decreed a public calamity due to the war in Ukraine. Without the decree, the increase would be theoretically unfeasible as it violates fiscal rules such as the spending cap. The calamity decree was cited by Guedes as a possible alternative for maintaining aid if the Ukraine war continues.
Source: CNN Brasil
