Minister of Economy Paulo Gedes (Andressa Ancholete / Bloomberg)
According to the Minister of Economy, Paulo Gedes, mass vaccination against covid-19 is the best fiscal balance policy. According to the federal government, as of this Tuesday, 25, just over 42 million people have received at least the first dose of the immunizer, which corresponds to 20% of the population.
“Vaccine is the best fiscal and public health policy,” he said at the event. CEO Conference Brazil 2021organized by BTG Pactual Bank (of the same group that controls EXAM). Gedes also added that the pandemic has slowed growth expected by the Ministry of Economy.
“With regard to Covid-19, I use an image showing that we were on the road to reform, only that it was on fire. We went to put out the fire to resume reforms. We didn’t know anything about this disease, we didn’t have any prospects for a vaccine, we didn’t know how much we were going to spend, ”he said.
Gedes also noted that there was a consensus between the executive branch and the legislature on the allocation of resources for emergency assistance and the purchase of vaccines, but with financial responsibility, which was his main prerequisite. In 2020 alone, the Ministry of Health transferred R $ 115 billion to the states to fight the pandemic.
“We are not going to lower this debt down to 100% of GDP. [Produto Interno Bruto]… The costs have to be one-off, and we are looking for Congressional support to stay within the spending ceiling, ”he said.
Privatization and reforms
As part of a program to warm up the economy and recover from the COVID-19 crisis, Gedes said administrative and tax reforms are fundamental in addition to privatization. According to Guedes, in the first two years of his rule, 200 billion reais were received from the sale of state assets.
“We live in a democracy, and the president is an alliance of liberals and conservatives. Congress is turning under this center-right deal. There is a minister who is trying to break the ceiling, this is normal, but when this happens, the Minister of Economy must warn and conclude an agreement without breaking the ceiling. Now we are moving towards administrative reform, ”he said.
On Tuesday, the chamber’s commission on constitution and justice confirmed the admissibility of the administrative reform. The text has yet to go through the plenary session.
Three tax reform proposals are also under discussion in Congress. A year ago, the Minister of Economy sent a text added to two other draft amendments to the Constitution on the same topic, and which are now being processed in Chamber of Deputies (PEC 45) and no Federal Senate (PEC 110).
Overall, the three texts propose changes to the entire tax base of consumption in the country, which corresponds to most of the government’s revenues. The executive’s proposal deals only with federal taxes, while the National Congress proposal combines federal, state, and municipal taxes.
Gedes said one of the ideas in the government’s proposal is to reduce taxation for companies investing in expanding their businesses and raise taxes for those companies that increase dividends in terms of balance and incentives. “It will be easy to understand and difficult to resist,” he said.
Ambulance
The second round of emergency aid began to be paid in April and will end in July. According to Paulo Gedes, the government is thinking about how to reform the Bolsa Família program and help the most needy families. An EXAME / IDEIA poll in early April found that 71% of emergency recipients used money to buy food.
CEO Conferente Brasil 2021 started on Tuesday 25 November and will continue on Wednesday. The panels include discussions with some of the biggest names in the country and the world in areas such as economics, market and finance, technology, health, agribusiness and careers.
The event, organized annually by the investment bank, this time in a virtual format due to the removal measures due to the coronavirus pandemic, has one of its goals precisely to promote the right choice on the part of society and its leaders.
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