Guedes denies use of precautions to finance Citizen Rent

BRASÍLIA (Reuters) – Economy Minister Paulo Guedes said on Wednesday that the economic team had never set out to break the ceiling or improperly finance the programs, referring to directing resources to Renta Ciudadana with the limitation to the payment of supplicant.

At a press conference, Guedes said that his team is studying how to merge 27 existing programs as a way to consolidate a more robust cash transfer program, which represents a landing after the end of emergency aid this year.

He stressed that, being a permanent expense, it must be covered with a permanent income.

According to Guedes, the government is evaluating the behavior of expenditures with precautions because it understands that they have shown “unbridled” growth, but denied that it is a solution for a cash transfer program.

The minister also reiterated his intention to promote the reduction of the payroll tax, which he described as “the most cruel and dirty” of taxes, but did not speak of how to finance the onslaught.

“We want to relieve everyone and forever, not just those who lobby in Brasilia and just for one more year,” he said.