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Paulo Guedes previously said that the discussion about changes in the spending ceiling cannot begin now, when Brazil’s debt reaches almost 100% of GDP.
In a congressional hearing, the minister said that public investment has been stifled by rising current expenditures.
“With the spending ceiling, as current expenses are growing all the time, public investments are paying the price, which has been falling for 25 years. Investments reached 15% of GDP, and today they are 1.5%, 1%. Federal public investments are 0.6% of GDP. If we triple, it is nothing. It’s still a very low number. “
For Guedes, the discussion on subjecting only current expenses to the ceiling “seems interesting”, but only if Brazil was in “another stage of our budget control.”
“The question of reviewing the ceiling cannot be when the debt is reaching 100% of GDP, a generalized expense for specific reasons, Health, fully explainable, but it is not time to take the last fiscal anchor that exists.”
The economy minister also said that the discussion on the spending ceiling would serve for the opposition to put pressure on the Bolsonaro government.
“If you say today that we are going to study [mudanças no teto], the political group from Ceará will attack President Bolsonaro. “They are looking to invest to win the elections, they removed the roof to be able to pretend.” This will begin. “
And he added: “In economics, the order of factors changes the product: if the roof is removed first, the country is set on fire.”
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