In an interview with CNN this Tuesday (9), the chief economist of Ryo Asset and former director of the Independent Fiscal Institution (IFI), Gabriel Barros, commented on the discussions for possible changes in the spending ceiling, the rule that prevents expenses from public prices rise above the variation of inflation registered in the previous year.
Barros believes that the market will no longer “give the benefit of the doubt to change the fiscal framework without delivering anything in the short term”.
“The National Congress, with the three PECs it approved, destroyed what I call “ceiling technology”. Any new tax rule is going to run into an enforcement issue,” he said.
For the economist, the federal government still has ample space to cut public budget expenses.
“How much can we save on an administrative reform – albeit a bad one? In 10 years it is, below, R$ 200 billion. Fusion of social policies, if we do, how much can we save? On the cheap, BRL 20 billion a year… more than BRL 200 billion in 10 years. Not to mention the gain you have with irregular concession cuts. Mathematically, the idea that there is nowhere else to cut the public budget is wrong,” he said.
Barros also criticized the idea of replacing the spending rule with a debt rule to serve as an anchor for fiscal policy.
See more in the video above.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
