Tuesday , January 18 2022

Colnago says the budget deficit could be closer to R $ 20 billion than the target.


BRASÍLIA – Esteves Colnago, planning minister at the CMO's public hearing today, stressed that the central government should close this year with a budget deficit of less than R $ 20 billion. 159 billion And he stressed that the deficit is still high.

However, the minister believes the government 's expectation is that the deficit has been declining over the past few years. This is due to expiration of the spending limit.

"It is decreasing over time that the fiscal deficit is fixed at the spending limit," he said, "which allows us to predict the reduction in the deficit."

Highlighting the steady increase in social security and personal expenses that should rise from 13.6% of GDP in 2018 to 14.7% of GDP in 2019.

For total spending, spending increased from 64.3% in 2018 (last available data) to 66.9% in 2019.

The interior minister said he plans to import and order RMB 15.6 billion next year. He said he was conservative.

"We try to build a cautious budget for the next government as much as possible," the minister said.

With regard to the necessity of approval of the National Council for supplements or special credit approval for the Golden Rule (in 2019 with a lack of compliance of $ 28.2 million) paying some of the expenses such as Bolsa Família and Bolsa Família, You must approve such credit.

The Minister of Planning said that payments to BPC and Bolsa Familia are not related to payments to BPC and Bolsa Familia because they consider the approval of the National Council to be quiet or facilitated. The next president will also approve the loan for seven to eight months at the National Assembly.

Bolsa Família costs R $ 30 billion and R $ 15 billion relates to this loan approval.

Regarding the parameters used to prepare the 2019 budget, Colnago said that the INPC, which could affect the value of the minimum wage, could change. "The biggest difference we can get from INPC is a little bigger," he said.

"If the INPC is bigger than anticipated in the 2019 budget, the definition of minimum wage may be greater than R $ 1,006, and if more than that, the R $ $ 340 million is needed," he said.

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