Lula says Brazil is experiencing a “funny” fundraising crisis By Reuters

Lula says Brazil is experiencing a “funny” fundraising crisis By Reuters
Lula says Brazil is experiencing a “funny” fundraising crisis By Reuters

© Reuters. President Luiz Inácio Lula da Silva 01/11/2023 REUTERS/Adriano Machado

By Fernando Cardoso

(Reuters) – President Luiz Inácio Lula da Silva said this Wednesday that Brazil is experiencing a “funny” revenue crisis, as despite the Brazilian economy being expanding, federal revenue is falling.

“It’s a funny crisis, the economy is growing, but revenue is falling,” said Lula in a speech at the signing ceremony of the service order for the duplication of BR-423, at Palácio do Planalto.

The president’s concern has also been demonstrated by other members of the government on several occasions in recent weeks. The Minister of Finance, Fernando Haddad, stated on Monday that, while the Gross Domestic Product should grow 3% at the end of the year, revenue should not increase “not even 1%”.

In addition to mobilizing the proposal of a series of measures in order to increase revenue, such as the taxation of exclusive funds and sports betting, the situation generated an impasse over the commitment to meet the fiscal target of zeroing the public deficit next year .

Lula had said last month that the target would “hardly” be achieved in 2024, while Haddad refused to reinforce the objective of closing the deficit when questioned several times by journalists over the last week.

This Wednesday, data from the Central Bank showed that the consolidated public sector recorded a primary deficit of 18.071 billion reais in September. Economists consulted in a Reuters survey expected a surplus of 4.26 billion reais.

At the ceremony, Lula also said that he hopes that the text of the tax reform can be approved in the Senate plenary this Wednesday or Thursday, after the report on the matter receives the approval of the senators in the Constitution, Justice and Citizenship Commission (CCJ) On the eve.

The president stated that he wants to make the country’s economy and wages grow again, while promoting a drop in food prices. He highlighted that Brazil has never before been seen as such an attractive hub for foreign investment.

Lula argued that no one can compete with Brazil in the production of renewable and clean energy, which could attract the interest of other countries that are concerned about combating climate change.


In his speech, Lula said that the government of predecessor Jair Bolsonaro committed a “crime” against the country’s economy, and that he hopes that one day this will be judged.

He stated that almost all ministries needed to be rebuilt after he took office and that it will be necessary to hold competitions for the portfolios to reach the number of employees of his two previous administrations.

“What was done to the Brazilian economy was a crime that perhaps one day the Public Ministry will file a complaint and these things will be judged, because it is not possible to govern a country with so much irresponsibility,” he said.

The president reiterated that during his term, no mayor or governor will be treated based on party affiliation, defending that the release of Union resources to states and municipalities be made based on the analysis of the “clarity and importance” of the projects presented.

The article is in Portuguese

Tags: Lula Brazil experiencing funny fundraising crisis Reuters



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