The day is coming for the country to know the new fiscal rule to control public spending.
President Luiz Inácio Lula da Silva (PT) sits down, this Friday (17th), with the economic team to discuss the Ministry of Finance’s proposal to give credibility to the fiscal policy of the new government.
The formula is closely guarded, but the essence of the model has been anticipated drop by drop by ministers Fernando Haddad (PT) and Simone Tebet (MDB) in press interviews.
While Lula does not want to be tied down to spending and investment, Haddad needs a tool that will hold back expenses and prevent the continuous growth of the public debt. What hinders this control is the idea of discretion with little or no limits on decisions — that is, what the government on duty decides, counts.
One of the challenges is to have the political courage to spend less when the country grows more, a principle that was not fulfilled in the PT mandates.
When announcing the new rule, Lula and Haddad want to count on the approval of allies, the National Congress, the financial market and even with the benevolence of the Central Bank in the interest rate decision next Wednesday. It won’t take long to know how this soap opera will end.
In this Friday’s episode, the CNN Money he also talks about the dispute for leadership in conducting fiscal policy and the new news involving the crisis of confidence in the banking system, after a group of 11 US banks promised to inject US$ 30 billion into First Republic Bank, which had been facing difficulties since the recent Silicon Valley Bank and Signature Bank crashes.
Presented by Thais Heredia, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.
*Posted by Tamara Nassif
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
