Before an audience of investors and young libertarians at an event of the giant Brazilian investment fund XP Investmentsthe minister was applauded on Wednesday night as if he were a rock star, even when he admitted that he allowed breaking the “mother” rule to freeze the fiscal deficit.
“They say that we have violated the spending ceiling and I tell them that yes, we have violated the ceiling. The ceiling is to prevent the growth of the State because we are liberals, we want to reduce the weight of the State,” explained Paulo Guedes.
“So, the ceiling is to prevent the state from growing. The pandemic arrives and money has to be transferred to people. That does not mean that it makes the State grow. I am helping the most fragile to survive the pandemic or a war,” Guedes said.
The economy minister had opposed a mega pack of Bolsonaro approved by the Congress to expand 7,700 million dollars the public spendingincreasing social plans, a constitutional amendment called “electioneering“since it comes into force in August until December, when the elections are in October.
Economy: “The worst is over”
Guedes maintained that for Brazil, the main commercial partner of the Argentina“the worst is over”, since he expects his country to perform better than the developed economies after the pandemic and the conflict in Ukraine.
“The Brazilian economy shows resilience. We advanced more than developed countries after the pandemic. We create between 200,000 and 300,000 formal jobs per month. Unemployment is falling and we will have 8% at the end of the year. Don’t be scared because the worst is over,” he said.
He also argued that Brazil is “doomed to grow” although he acknowledged that the decisions of the central bank of increasing the interest rate to 13.75% per year reduce those expectations.
Guedes also highlighted the privatization of the electrical giant Eletrobrasthe largest in Latin America, and the pension reform finalized in 2019.
Paulo Guedes said that contrary to what the São Paulo state government did, the Ministry of Economy froze wages and instead reduced taxes on industrialized products and more recently in regional taxes to lower the price of gasoline.
Source: Ambito
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