The Minister of Planning and Budget, Simone Tebet, acknowledged the government’s difficulties in meeting the fiscal target and said that the revenue recovery agenda is running out. “Going beyond that means increasing taxes,” the minister told journalists this Tuesday (2).
For this year, the government is chasing a zero deficit, and for 2025 it projects a surplus of 0.5% of the Gross Domestic Product (GDP), however, the minister recognized that the goal of achieving a surplus of 0.5% will depend on a favorable fundraising scenario, which in his view is already running out.
“The increase in the Brazilian budget from a revenue perspective is already running out. Going beyond that would mean increasing taxes,” said Tebet when speaking about the preparation of the Multi-Year Plan (PPA) 2024-2027.
The minister also explained that her department takes care of expenses, while the Ministry of Finance, led by Fernando Haddad, takes care of revenue.
“He (Haddad) has the revenue side, we have the expense side. We still [não] we meet to put it on the table. Minus B has to be zero this year. A minus B [para 2025] it has to give a surplus of 0.5% [do PIB]. If it does not produce a surplus of 0.5%, we will clearly take this to JEO [Junta de Execução Orçamentária] and say: ‘Look, the numbers don’t add up, either we’re going to revise the target, or we’re not going to revise the target'”, he stated.
Formed by ministers Rui Costa (Civil House), Esther Dweck (Management), in addition to Haddad and Tebet, JEO is responsible for budgetary decisions. The collegiate is expected to meet next week to discuss the numbers of the 2025 Budget Guidelines Bill (PLDO). The proposal must be sent to the National Congress on April 15th.
Based on the revenue measures approved by the government to date, the Executive expects an increase of R$168.3 billion in 2024. As a large part of this revenue comes from extraordinary sources, there is no guarantee that this collection will be maintained in 2025.
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Infographics Gazeta do Povo[Clique para ampliar]
