Increased spending is frozen until country finds sustainability, says Haddad

Finance Minister Fernando Haddad defended a caution attitude towards the country’s fiscal and economic scenario. For him, it is time to “freeze the debate on expense increase” until the government finds a sustainable path to public accounts.

“We are at a time when I think we should freeze the debate on increased spending until I find the way of sustainability of accounts. At this point I think no increase in spending is welcome but the indispensable. In Brazil’s situation less is more,” the minister said in an interview with Record on Tuesday (24).

Haddad also commented on the central bank’s recent decision to stop the Selic rate cuts cycle, which is now fixed by 15%. According to him, the discharge of interest was “hired” in December, when the then president of the monetary authority, Roberto Campos Neto, still participated in the decisions of the Monetary Policy Committee (Copom).

“It’s something called ‘Guidance’, that is, it’s like you’ve set a future hiring of the rate. You can’t give a dick in monetary policy, you’ll lose credibility, you’ll lose the economy’s headline, so you have to be very cautious,” he said.

Still, Haddad acknowledged that the taca is at a very high level.

“I’m concerned evidently, it’s a very, very restrictive interest rate.”

Coverage residents

In dealing with tax reform and the search for more justice in the collection, the minister made an analogy to criticize inequality in the country.

“We are no longer able to live in the midst of a country where most have little, it is from hand to mouth, it is the day to day, that daily fight, and the coverage resident is there without paying condominium, regardless of what is happening in the building.”

According to him, the purpose of economic policy is to balance the public accounts with more social justice by burdening those who do not pay tax and release who pays tax.