Grilled for 9 Hours in Congress, Brazil’s Finance Czar Denies Any Wrongdoing

During nine hours of testimony before the Brazilian Senate’s Commission on Economic Affairs, Wednesday, November 16, Brazil’s Minister of Finance, Antonio Palocci, commented on a wide range of topics.

But his emphasis was on the government’s consistency and progress in the economic area. "We are moving into a prolonged cycle of growth. It is now possible for Brazil to go through a long and consistent period of expansion," said the Minister.

Palocci was questioned on charges in the media regarding malfeasance in the city government of Ribeirão Preto, in the interior of São Paulo state, when he was mayor. Asked about the 2002 presidential campaign, he denied that any money came from abroad.

However most of the questions were on economic matters, such as interest rates and long-term fiscal policy. He said the primary surplus target of 4.25% of GDP for this year remained in place.

He said he favored a reduction in interest rates but warned, "The right conditions must exist before the rate can come down any faster."

Palocci said he was "saddened" by the charges of scandal in the PT and the government, but that he was not going to let that get him down. "I am doing my part, even if some errors have been made," he said.

Palocci said that the way to reduce taxes and lower interest rates was through spending cuts by the government.

"The fact is that the tendency over the last ten years has been for spending to rise as a percentage of GDP which has to be financed through higher taxes."

Palocci showed the commission a graph where it could be seen that payroll expenditures by the federal government have risen from 14.4% of GDP in 1996, to 17.2% in 2004.

"If we can control these expenditures we will have money for investments and tax cuts. It will also stimulate domestic savings."

Finally, Palocci said progress was strong in social assistance. There had been growth in harvest assistance, income transfer, health, security and revenue sharing with states and municipalities.

Agência Brasil

Tags:

You May Also Like

Brazil’s Foreign Debt Drops US$ 13 Bi to a Still Hefty US$ 201 Bi

Brazil’s net foreign trade, service, and financial accounts in February resulted in a US$ ...

Brazil and Mercosur Sweeten the Deal for EU

In an attempt to reach an agreement with the European Union before the October ...

Brazil Brings to Miami Coffee, Cachaça and All Kinds of Food to Sell the World

On Monday, February 6, the Brazilian Export Promotion Agency (APEX-Brasil) made a presentation to ...

Brazil Wants to Export Eco-Electric Shower

Brazil's KL Telecom, a company located in Santa Rita do Sapucaí­, in the Brazilian ...

Brazil to Have 1,150 Bone Marrow Transplants in 2005

Seven hundred seventy bone marrow transplants were performed in Brazil between January and August ...

Workers' protest in Brazil

Brazil Needs a General Strike to Demand Good Education for All

May Day is no longer commemorated as it once was. The crisis in socialist ...

After Three Decades of Delays and Protests Amazon Hydro Project Ready to Start

In Brazil, building will begin now on what should be the world’s third-largest hydroelectric ...

A Global Effort to Protect the Amazon Forest

In the Brazilian Amazon basin there are currently 42 conservation units (UC’s), encompassing approximately ...

Brazil’s Elections and the Power of the Status Quo

Brazil’s presidential election campaign, already marked by tragedy, continues with high drama after the ...

White-House Inspired

If it weren’t for President Clinton, the song "Boquete" would probably still be in ...