23/08/2016 15h01 - Updated 23/08/2016 15h01

Federal government discards tax increase to 2017

Taxes will be increased this year and 2017 to achieve the fiscal target, second chief minister of the Civil House, Eliseu Padilha,
Photo: reproduction
Photo: reproduction

The government has decided that it will not raise taxes this year and 2017 to achieve the fiscal target. The information was given today (23), the chief minister of the Civil House, Eliseu Padilha, recognizing that Brazilian society has no more to bear the tax burden increases.

"Already decision by the treasury area in this regard following the guidance of President Michel Temer. There will be no tax increase in 2017 ". In consequence, Padilha said that the project that creates limits to the growth of public spending based on the variation of the previous year's inflation rate "is non-negotiable". This calculation is provided in the Project of the Budget Guidelines Law (LDO), which is under consideration of the National Congress.

"There is no way for the government to work with flexibility [two expenses]. Of course the final decision is up to Congress, but, if we do not have the approval of the expenditure restraint, we'll have a very significant increase in public debt. It's like the house of John, Mary and Joseph: the limit credit card and overdraft burst, no more like drawing [money], so we have to cut costs. Hurts a little, You will not be more movies, weekend party ", compared.

Padilha said, as the government will not charge the company, the difference to the balance of public accounts will have to come from spending cuts. "So let's take the road, security, since spending on health and education are kept constitutionally - can not be moved, let's take where possible ".

Pension Reform
The minister again defended the need for Social Security reform. "We have to make Brazil is viable in the long run. And there are two things that are absolutely essential to be faced. One is the issue of public debt, hence the reason the ceiling, and the other is the pension reform. If no, in some years, the guy comes to your retirement card in the bank and have no money required for the payment to be made. "

wage increases
Eliseu Padilha also confirmed the government's decision not to negotiate wage increases before it is decided the issue of impeachment of President Rousseff away, since the negotiation was at odds with the government's own support base.

"This was a decision taken at the meeting of the college on Friday in Sao Paulo, which concluded that there was no atmosphere at the base. So the government decided [the deal] until at least after the impeachment vote ". The decision, second Padilha, It will reach all the categories that have some connection with the Executive.

The minister gave the information in interview, no Rio Media Center, to present, next to the mayor Eduardo Paes, the final balance of the Olympic Games 2016.

Source: Agency Brazil

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