In a speech more in line with the government, Central Bank President Roberto Campos Neto argued that the current figures do not show the deterioration of the financial scenario, repeating that there is a difference between a loud perception and reality. “Where is the big financial decline? The numbers don’t show it,” he said, at a symposium of the Brazilian Confederation of Banks (Verapan) and Esfera, where the president of the chamber, Arthur Lira (PP-AL), is also present.
Campos Neto cited the development of forecasts in the Focus Bulletin and said that the estimates of the total debt have been improving since November 2020 and that the forecast at this time is very similar to the previous scenario of the Covid-19 pandemic.
For 2021, the forecast is 81.5%, versus 81% of the government’s pre-pandemic estimate. As for the initial outcome, the forecast before the pandemic was for a deficit of 1.0% in 2021 and zero in 2022, “now it’s 1.70% and 0.30%, 0.40%,” Campos Neto said.
Even the president of British Columbia has refuted the argument that fiscal improvement can only be explained by inflation. “Inflation has had its effect, but there are many important effects,” he said, citing the increased consumption of goods, which generate more profits, in the epidemic and formal online services versus informal services.
Campos Neto also said that there is noise in linking the electoral process to government actions, citing criticism that the fund to be created in the PEC of precatório will be used to expand the Bolsa Família. But he made it clear that the truth is that everything will be done within the framework of the financial responsibility system.
He added: “Part of the government’s communications could have been smoother. Understand that there is noise in linking the electoral process to procedures. But the state has taken structural measures in the pandemic when no one has done so, and within the fiscal responsibility regime.” President BC, noting that Congress’ commitment to public finances is important.
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