Economy Minister Paulo Guedes said this Thursday (2) that one day he will “tell the secret” of how he reduced the public deficit from 10.5% of Gross Domestic Product (GDP) to 0.5%.
“We reduced the deficit from 10.5% of GDP to 0.5%. One day I’ll tell the secret”, said the minister during his participation in the 11th IDP Public Administration and Economy Seminar.
Guedes also said that the biggest enemy of the Brazilian Republic today is the lack of control over public spending. This, according to the minister, led Brazil to hyperinflation, a foreign moratorium, successive episodes of recession and chicken flights, double-digit interest rates and tax increases.
“This has even led us to corruption in politics. This brought us to stagnation. This lack of control over public spending came from 18%, 17% of GDP 40 years ago and reached 45% in the Dilma government. This is a story that went wrong”, said the minister, adding that Brazil was the fastest growing country in the world for two, three decades.
However, according to him, this was one of the problems in the economy that he knew he had to tackle when he reached the government and that deficit reduction was done in an unprecedented way in the country.
“There is no precedent like that, of a deficit of 10.5% of GDP becoming 0.5%. One day I’ll tell the secret, but we did it, something extraordinarily unprecedented”, said the minister.
Reference: CNN Brasil
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