Lula will have 4 pillars in the economy that undergo tax reform and better spending, says Haddad

Fernando Haddad’s half-hour speech at an event by Febraban, the Brazilian Federation of Banks, brought the four main pillars of the economic thinking of the Lula government 3.

Priority, the first pillar deals with tax reform with the advancement of projects that already have support among the private sector, governors and the National Congress. He especially mentioned PEC 45, which tries to simplify consumption taxes. Afterwards, tax reform would continue with changing taxes on income and wealth.

The second pillar aims to improve the management of public spending. Citing the loss of efficiency and quality of social programs, Haddad argued that it is possible to do more with less. And he gave the example of Auxílio Brasil. “Bolsa Família managed to end hunger in Brazil with 0.5% of GDP. Today, the program has 1.5% of GDP and cannot solve the problem”.

The third pillar of the economic agenda from 2023 deals with what Haddad calls “essential aspects for development”, such as investment in education and science and technology. In basic education, the former minister recognizes that Brazil already spends a lot when compared to rich countries, but it is possible to improve the result of this spending.

Finally, Haddad says that the new government wants to improve the Executive’s relations with the other powers. According to the former mayor of São Paulo, Lula wants to turn the “page of the war between the Presidency and other powers”.