Despite the efforts of the Brazilian Government, the Bovespa sinks 1.4% to 125,932 points, while the Brazilian currency is just 6 reais per dollar.
The Minister of Finance of Brazil, Fernando Haddadconfirmed that the package of measures to contain government spending will generate a savings of 70,000 million reais (US$11,800 million) in the next two years. In this scenario, fiscal concerns did not bear fruit and the actions as well as the local currency.
The Bovespa sinks 1.4% to 125,932 points, while the Brazilian currency is one step away from 6 reais per dollar (5.99).
Measurements include limits to the growth of the minimum wagehe payment of wage subsidies only to those who earn up to 2,640 reais, caps on high salaries for public workers and higher taxes for incomes over 50,000 reaisamong others. Besides, The Government also decided to exempt salaries of up to 5,000 reais from income tax.
Haddad also stated that With the new rules proposed for the minimum wage, it will continue to increase above inflation, in a “sustainable way and within the new fiscal rule”.
The measures will generate savings of 70,000 million reais until 2026
“These measures that I mentioned will generate a savings of 70,000 million of reais in the next two years and consolidate the commitment of this Government to the fiscal sustainability of the country,” said Haddad.
“To guarantee the results we expect, in case of primary deficitthe creation, expansion or extension of tax benefits will be prohibited,” added the Minister of Finance. At the same time, the minister confirmed that Those who earn up to 5,000 reais per month will stop paying income tax.
“The new measure will not have a fiscal impact, that is, it will not increase public spending. Those who earn more than 50,000 reais per month will pay a little more. All of this without excesses and respecting recognized international standards,” said Haddad, and was calm. to the market.
Source: Ambito
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