Haddad announces more measures to balance public accounts and reach “zero deficit” in 2024 | Economy

Finance Minister Fernando Haddad announced, on Thursday (28), a set of new measures that the government will send to the National Congress to improve the situation of the federal public accounts in the coming years.

These measures seek, among other factors, to ensure that the government is able to achieve the financial goal stipulated in the 2024 budget, which is a zero deficit, that is, spending only what will be collected in the year, without increasing public debt.

According to Haddad, the new package comes as a continuation of the government’s intention to combat the so-called “tax expenditures” – When a government gives up or loses tax revenues to achieve some economic or social goal.

“We have already indicated that after the tax reform is enacted, we will introduce complementary measures. What we are doing, as an economic team, is a detailed examination of the Union Budget, and this has been happening since last year, before the inauguration.” , He said.

“We continue our efforts to balance the books by reducing tax spending in our country,” Haddad said. “Brazil’s tax spending has grown even further, rising from about 2% of GDP to 6% of GDP.”

According to Haddad, the list consists of three criteria:

1. the – Limiting tax compensation provided by companies – That is, taxes that will not be collected in future years to “offset” taxes wrongfully paid in previous years and already recognized by the courts;
2. Changes to the Events Sector Emergency Resumption Program (PERS), which was created during the pandemic to benefit the cultural sector Congress extended it in May until 2026. According to Haddad, part of the tax cuts included in this program will be phased out during this period.
3. Gradual payment of salaries – Conflicts with the extension of the waiver approved by Congress – with Only partial exemption from the “first minimum wage” Every worker with an official contract receives it.

According to the economic team, the payroll tax break for the 17 labor-intensive sectors alone would represent a revenue reduction of R$12 billion in 2024. The government even indicated a total impact of R$25 billion from the text, taking into account other elements ( Such as an exemption from payroll taxes for city councils in small municipalities).

The government reported on Thursday that with the gradual restoration of burdens expected by the MP, the cost will fall to about R$6 billion – an amount that will be compensated by the changes in Perse.

According to the government, the three measures announced will be sent out in one temporary measure – the date has not been announced, and the text has not yet been published. The MP takes effect immediately and must be parsed by Congress only when it returns from recess beginning in February.

This report is being updated.