In an interview, Brazil’s Planning Minister Simone Tebet highlighted the need for structural fiscal adjustments, noting a crucial opportunity in late 2026. She expressed concern that the current fiscal framework could hinder future governance. Tebet also addressed excessive spending due to social programs and called for careful fiscal management to ensure economic growth and price stability while criticizing Congress’s fiscal responsibility.
Planning and Budget Minister Simone Tebet highlighted the necessity for Brazil to improve its fiscal rules during a recent interview. She indicated that a crucial “window of opportunity” would arise in November and December 2026 for implementing a structural fiscal adjustment. Ms. Tebet warned that by 2027, the next president might face an untenable fiscal situation leading to inflation and debt increases due to the current fiscal framework’s inadequacies.
Tebet emphasized the need for careful adjustments that would ensure public debt sustainability, lower interest rates, and foster economic growth. She affirmed that missing this opportunity would be detrimental to Brazil’s economy. Currently, she noted that previous fiscal measures have led to excessive spending to restore social programs, stating confidently that the government will meet this year’s fiscal targets without resorting to ineffective past policies.
The minister criticized Congress’s lack of fiscal responsibility, admitting unexpected challenges in finding a conservative ally in Congress. Despite these challenges, she commended Gleisi Hoffmann, the new Minister of Institutional Relations, for her loyalty to President Lula and support for critical economic measures.
Additionally, Tebet discussed the need for courage in addressing complex issues, including the consideration of a five-day workweek. She believes this shift could bolster productivity and enhance job quality. Lastly, she anticipated that exempting import taxes on specific food items would noticeably impact local prices within 30 days, thereby supporting domestic markets amidst rising food costs affecting President Lula’s approval ratings.
In summary, Minister Simone Tebet stresses the urgent need for Brazil to revise its fiscal framework in anticipation of challenges in 2027. The recognition of a critical period for structural adjustments in late 2026 underscores the government’s commitment to economic stability and growth while facing obstacles in collaboration with Congress. Measures aimed at refining work schedules and adjusting import taxes reflect the administration’s proactive approach to fostering economic resilience, particularly in response to rising prices.
Original Source: valorinternational.globo.com
