Running out of control is bad for the Brazilian economy, says Maílson da Nóbrega

In an interview with CNN this Saturday (3), former Minister of Finance Maílson da Nóbrega criticized the text of the PEC of the Explosion, stating that, even for social purposes, government spending must be controlled.

In Maílson’s assessment, the way to ensure service to the less favored classes is to cut expenses in other areas. Or else, “promise that you will cut or make a firm commitment that you will reduce spending in other areas. If not, the debt goes up. And, going up, it can get out of control and getting out of control is bad for the Brazilian economy and, especially, for the poor, ”he said.

The Proposed Amendment to the Constitution was filed along the same lines as the draft presented by the transition team of Luiz Inácio Lula da Silva (PT), with an extra cost that could reach R$ 198 billion.

Of the total value of the PEC, R$ 175 billion are destined to Bolsa Família. For the former minister, however, the program’s budget is predictable and, therefore, should not break the ceiling.

“It is a program that has existed for almost 30 years, its value is known, the number of participants is known. It is possible to design your trajectory”, he said.

According to Maílson, “the spending ceiling is a strong budget constraint, adopted when other mechanisms have failed to prevent an explosive trajectory of the public debt, because if this debt acquires an explosive trajectory, at some point, there will be a perception on the part of investors that the country is heading towards default”.

Watch the full interview in the video above.

Source: CNN Brasil

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