the former minister Nelson Barbosaone of the members of the Economy of the transition cabinet, said he believed that 70 billion reais would be little for the next government to face the need for spending to pay for Lula’s promise to grant aid of 600 reais in January until the end of the year.
He stated that there is currently fiscal space in the Union Budget to reorganize expenditures of around 136 billion reais. Directing that amount to pay social benefits would not represent, he said, a real increase in public spending compared to what was done in the last year of Jair Bolsonaro’s government.
Former Minister of Planning and Finance in the governments of Dilma Rousseff, Barbosa explained that this year public spending in relation to GDP will be around 19%. This percentage, next year, would be 17.8%.
He stated, however, that the working group on the Economy in the transition does not yet have a closed value for the PEC that will allow the government to use resources above the expenditure ceiling regime.
“We are analyzing and talking with the team that is looking at this with Congress. My personal opinion is that BRL 70 billion is little because the budget that was sent for 2023 has an expense in relation to GDP lower than that of 2022, close to 18% of GDP. If you add up to 136 billion in spending in next year’s budget, the spending will be equal to what the Bolsonaro government actually did last year. In other words, there is no fiscal expansion. The ideal value for the PEC is something that the transition team that is in Congress is negotiating,” he said.
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