Brazil’s Planning Minister Advocates for Urgent Fiscal Reforms and Economic Adjustments
Brazil’s Planning and Budget Minister Simone Tebet emphasized the urgent need for fiscal reforms, warning that the next president will face governance challenges under the current framework by 2027. She identified late 2026 as a critical time for structural adjustments and fiscal responsibility, while also promoting a potential reduction in the workweek to boost productivity.
Planning and Budget Minister Simone Tebet has articulated the critical necessity for Brazil to reform its fiscal rules in light of an anticipated fiscal crisis in 2027. During an interview with GloboNews, she stressed that the future president will be unable to manage effectively under the current fiscal framework, as it may lead to inflation and increased debt.
Tebet foresees a “window of opportunity” in November and December 2026 for implementing structural fiscal adjustments. She emphasized the importance of adopting a more rigorous fiscal framework designed to encourage economic stability without overly constraining public spending.
The minister underscored that the adjustments would focus on ensuring sustainability of public debt, reducing interest rates, curbing inflation, and fostering economic growth. She asserted, “We cannot afford to miss this window of opportunity.”
While acknowledging the challenges posed by the transition constitutional amendment that resulted in soaring expenditures for social programs, Ms. Tebet expressed confidence that the government will meet its fiscal targets for the year without deleterious financial measures.
Tebet also criticized Congress for not exhibiting the fiscal responsibility anticipated by the administration. She remarked on the disappointing partnership with Congress regarding fiscal conservatism and emphasized the need for realistic strategies going forward.
Conversely, she commended Minister of Institutional Relations Gleisi Hoffmann for her commitment to President Lula’s administration and expressed hope that Hoffmann would assist in promoting the economic initiatives currently under consideration.
Additionally, Tebet advocated for a reduction in the workweek from six to five days, citing potential benefits in economic productivity and job quality with proper transitional support for businesses.
Lastly, she indicated that measures to exempt import taxes on specific food items would soon yield positive effects on pricing and could encourage local market focus among producers, as part of efforts to ameliorate President Lula’s declining approval ratings due to rising food prices.
In conclusion, Minister Simone Tebet is advocating for essential fiscal reforms in Brazil to prevent economic downturns anticipated for 2027. She identifies a crucial opportunity for adjustments by late 2026 and emphasizes the importance of fiscal responsibility among lawmakers. Despite challenges, she maintains optimism about the government’s ability to qualify the budget within fiscal rules while promoting economic growth and stability.
Original Source: valorinternational.globo.com
