• Categories
  • Archives

A Plan to End Brazil’s Fiscal Deficit

A significant strand of economic thought both within and outside the Brazilian government, as well as a goodly share of the institutions and corporations responsible for the country’s Gross Domestic Product (GDP), will be represented at a dinner tonight in the federal capital.

The centerpiece is an idea that has been filling newspaper pages in recent weeks, eliciting praise from entrepreneurs, members of the government, and opposition leaders, but drawing strong criticism from the Left and civil society: to eliminate the country’s fiscal deficit.


The reception is being organized by ex-Minister of Finance, Federal Deputy Delfim Netto, from the PP (Partido Progressista – Progressive Party) of São Paulo.


The Brazilian government currently runs a primary surplus – which means that it spends less than what it collects, provided debt interest expenses are disregarded.


So, despite large primary surpluses, the country continues to run a deficit, due to interest expenses. Delfim Netto’s idea is to eliminate this deficit.


The country’s fiscal commitment targets (roughly, what the country pledges to save to cover its debts) are mainly intended to maintain the confidence of society and the markets in the country’s ability to pay what it owes, which is largely reflected in the country risk assessment made by specialized agencies.


The country’s current fiscal policy is to obtain a primary surplus (federal government receipts minus expenditures, excluding interest and amortization payments) equivalent to 4.5% of the GDP.


That is, the country saves the equivalent of 4.5% of the GDP, savings used to pay interest on the debt.


One of the hypotheses for achieving the target proposed by Delfim Netto is to raise the Untied Portion of Federal Receipts (DRU), which presently allows up to 20% of the budget to be spent in areas not stipulated in the Federal Budget.


At least three Ministers are expected to attend the dinner: Antônio Palocci, of Finance, Paulo Bernardo, of Planning, and Jaques Wagner, of the Economic and Social Development Council (CDES, Conselho de Desenvolvimento Econômico e Social).


ABr – www.radiobras.gov.br

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

No Yes-Man Anymore

After 100 years playing a subordinate role to the United States, Brazil, under Lula, ...

Europe Bans Brazilian Beef. Brazil Calls It Protectionism

The European Union will freeze all imports of Brazilian beef as from Thursday after ...

Brazil Cinemas Must Show 35 Days of Brazilian Movies in 2005

Brazilian movie theaters will have to show Brazilian films for at least 35 days ...

Brazil Joins World on Mourning for Auschwitz

The Brazilian Ministry of Foreign Relations released a note, January 27, on the occasion ...

Ten-Party Coalition in Brazil Demands Justice and Accepts No Deals

Brazilian Deputy Rafael Guerra (PSDB party of Minas Gerais state), Wednesday, August 31, read ...

New York and LA Get to Know Brazil’s Damasceno Art

The Project, New York and Los Angeles, will present, March and April, the first ...

Moreno Veloso and Orquestra Imperial Make US Dance the Brazilian Way

The campus of Montclair University became a big open-air “gafieira” (the name given to ...

Being and Becoming

Mario Quintana is probably the greatest poet in (at least) the history of his ...

California and Santa Catarina, Brazil, Sign on the Dotted Line

The top trade official for Santa Catarina, Brazil, has signed  agreements with the Bay ...

A Candid Talk with Gerald Thomas, Brazil’s Brightest Prima-Donna

Trying to explain one’s art and motivation, while defending a particularly individualistic view of ...