If the extract is confirmed, it will hardly be lower in the future, says economist

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In an interview with CNN this Thursday (24th), professor and researcher at Insper, Marcos Mendes, assessed that, if the PEC for the Burst confirms an increase in expenses above what is necessary, “it is unlikely that this extract will decrease in the future”.

“I don’t think the authorization to spend is temporary. There is all this discussion about terms, but, for me, it doesn’t make sense”, declared the economist.

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“If you increase the level of spending, it will never come back. Every time the term expires, it will be discussed again and will be renewed, most likely. What I defend is having a permanent and definitive fiscal space, but one that is not excessively high and does not make the public debt rise.”

Mendes also commented on the proposal to remove the Auxílio Brasil — which should be renamed Bolsa Família — from the spending ceiling permanently. In his view, it is a “very serious problem”.

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“If the entire amount referring to the Brazil Aid is removed from the ceiling, this part of the expense will be out of control, being subject to many political incentives that will want to increase the program well above inflation and the economy, since it will be out of control. any legal restrictions.

“Another problem is that this will generate accommodation that will not induce the reform of this program, which needs to be reformulated. Auxílio Brasil was poorly designed, and the biggest sign of this is that the distribution of resources is now per family, and no longer on a per capita basis, which means that 5 people receive the same amount as 1 person alone. The result of this is that families are dividing to earn more. The number of single-person households rose from 2 million to 5 million in less than a year.”

In the economist’s view, this means “waste of resources, greater difficulty in reaching the poorest and, therefore, an inefficient program”.

Source: CNN Brasil

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