Brazilian public spending can not continue to grow, says MeirellesAccording to the minister we need to keep tight control on public accounts.
By participating today (23), the Financial Institutions Information Technology Congress of the Brazilian Federation of Banks (candles- Febraban), in Sao Paulo, Minister of Finance, Henrique Meirelles, He said the Brazilian public spending can not continue to grow, and that we need to keep tight control over accounts, why the government drafted the Proposed Amendment to the Constitution (PEC), limiting public spending for primary expenditure in the Executive, Legislative and Judiciary. The proposed text, the increase in public spending will be limited to the variation of official inflation of the previous year. The determination is worth 20 years.
"It is possible that public spending will continue to grow, so did the program, first of all, evaluates the actual deficit this year, taking into account the work already performed, late payment of rent outside Brazil's embassy, Among other things. We conclude that there is R $ 170 billion deficit. The first thing to say to society, from here, let's go back. It's tight, but you have to keep tight control ", said Meirelles.
The minister said the idea is to get fit for the total expenditure ceiling, that may not suffer higher elevation than the year inflation, which means that the government will maintain the real purchasing power. "It means that the real growth of public companies will be zero above inflation, or increase versus 6% [occurred] for more than 15 years, e versus or increased 50% [occurred] from 2008 a 2015. If this is placed in the Constitution, It becomes a very strong norm ".
according to Meirelles, no expense items incompatible with the standard, such as education and health and that the proposal is that the resources are corrected consistently, and according to the target. "Health and education are national priorities fact, but we can not start breaking the country. The problem of Brazilian education is not the amount of resources that arises but, the quality. This will require serious investments and will not be with the allocation of resources to solve. We will keep the resources for education in real terms. "
Meirelles said that moments of crisis are opportunities for growth and that society demands solutions. "We need to restore growth and, for this, we need to restore confidence that the government can manage their own accounts and, thenceforth, we have reduced the total absorbed resources of society for public debt financing. History shows that when you control the public debt interest rates fall ".
according to Meirelles, Social Security reform is critical and there is optimism in the government that is approved for up to three months. "Social Security needs discussion and a very functional proposal, which is complex and involves different segments of society. The first step was to take the Department of Welfare of the Ministry of Labor and put it on the Farm ". He said that the National Congress has approved important items such as the state governance project, and opening the model for the pre-salt is already moving, to be a government priority.
The minister also cited the renegotiation of the debt of states, consolidated on Monday (20), and analyzed that Brazil's fiscal problem is not only the federal government, since some of the largest states have shown expenditure growth, with the civil service above inflation. "This is unsustainable and, the bill of the agreement we made with the states, it is established that the evolution of public spending will follow the same limit the federal government. We reached an agreement and accepted it ".
For or minister, with all these measures in progress, the government will be able to devote to a microeconomic schedule, listening to the varied business segments suggestions. "The idea is to establish confidence in the economy and, thenceforth, increase revenue, surplus and consumption and, like this, enter a period of sustainable growth in Brazil ".
Meirelles also said that the country is experiencing an important moment, because it has reached a point where it has to make decisions, as, depending on the results of this year, will have its deepest recession since the Gross Domestic Product (START) It has been measured in the country. "This brings unemployment to the levels we are, with more than ten million people, and defiles the whole operation process of the economy, by increased uncertainty and declining consumption decisions, invest, contract".
According to the Minister of Finance, there are sectors of the economy that report idle above 40%, which reflects a dramatic situation with the parks of standing plants. He argued that, to combat this situation the country should identify the most serious problems and attack them first. "Disorganized attempt to tackle all kinds of problems, at the same time requires much effort and the results can be ineffective ".