Zero deficit is target, not promise, Treasury says
The Secretary of the National Treasury, Rogério Ceron, said in an exclusive interview with Valor that it is important to distinguish the target from the actual primary result that will be observed in 2024. The target is a bold goal to pursue, he said. The result, if it is within the range established in the new fiscal framework or at least better than market expectations, will already be positive for the ongoing tax recovery process."Our commitment is to turn the ship around as soon as possible. So, this discussion from scratch is symbolic for us because we want to target, and we will continue to target. But it doesn’t mean — far from it — that there isn’t a tax recovery process underway if it’s not exactly that amount," he said. "It’s important to distinguish: one thing is the actual result, the other is the goal you are going to pursue," he added.He said it’s important to set high goals. Otherwise, they become a floor. Mr. Ceron said that the government has "feasible conditions" to achieve a primary result in 2024 "much better" than what is in the median of market expectations, which is a deficit of 0.8% of GDP, according to the latest Central Bank’s Focus survey.On changing the target, the secretary said it is not under discussion, but made a caveat: in the economic team. "We will seek, regardless of what the formal target is, the zero result, the balance of accounts."The proposal presented last week to accelerate payment of registered warrant payments (IOUs issued by the judiciary branch and known as precatórios) has generated controversy among experts and is not a consensus even within the executive branch. For Mr. Ceron, it was an opportunity to provoke a debate on a serious problem. In his opinion, postponing the payment of the writs is tantamount to a "forced loan" or a "partial moratorium."In the administration of former President Jair Bolsonaro, two constitutional amendments were passed that established a limit for court-ordered debt payments each year. The payments above this limit were postponed until 2027, creating a "snowball" that can reach up to R$250 billion of primary impact.Last week, the Lula administration proposed to the Federal Supreme Court (STF), within the framework of two cases that discuss the constitutionality of the constitutional amendments. The idea of the Ministry of Finance is to allow the government to liquidate the stock already accumulated — which reaches R$95 billion — outside the spending limit, with the opening of an extraordinary credit. For the future, the proposal is to pay only the principal of the court-ordered debts as a primary expense and the rest as a financial expense."The government is taking a very strong stand in the courts against this issue of not paying obligations on time," he said. "If we don’t put this problem under the sunlight when we get there, it will be our responsibility." Read below the main excerpts...
Para continuar a ler
PEÇA SUA AVALIAÇÃO