The Minister of Economy, Paulo Guedes, said yesterday the 3rd that the spending ceiling is “retractable” and can be lifted in case of a pandemic or war.
The minister of economy admitted that the government breached the spending limit to implement the increase in the value of Auxílio Brasil, but that the action was not to “increase the state”, but to protect the most fragile.
“Did you breach the ceiling? The answer is yes, we breached the ceiling. The ceiling is to prevent government growth, because we are liberals and we want to reduce the government's weight. So, the ceiling is to not let the government rise. Then an illness arrives, I have to transfer money to people. Am I making the government grow? No, I'm helping the most fragile”, said Guedes in a lecture at Expert XP 2022, in São Paulo.
The minister stressed that the break in the tax ceiling is supported by extraordinary government revenues not budgeted, such as dividends from state-owned companies that made a profit.
“This year everything is within fiscal responsibility. Then you ask the following question, but are you disrupting the Brazilian tax scheme? Not. Every time there is a war or a pandemic, the roof is retractable, the roof lifts and we help Brazilians,” he added.
The minister also said that he could maintain Auxílio Brasil beyond the end of 2022 and correct the income tax table if the tax reform is approved.
“Is it possible to give emergency aid now of 600 [reais] forever, for example? Or is it possible to readjust the income tax table? The answer already lies in a tax reform that is already in Congress,” he said.
Guedes highlighted the new 15% tax on profits and dividends over BRL 400,000 per month provided for in the reform.
“No one will pay, only those who take another R$ 400 thousand in dividends. Then you will pay only 15% of what exceeds this amount, which is half of what your employee pays. For God's sake, if we don't, it's a moral imperative,” he stressed.
Guedes also said that the country's fiscal situation is balanced, that inflation shows signs of falling, employment is on the rise, and that monetary policy "is in place". “In a year and a half we will have a growth of 3%, 4% and there will be an inflation of 3%, 4%”.
Sources: investing.com
