Fiscal package foresees savings of R$70 billion, but adjustments are still necessary

According to the fiscal package announced by Finance Minister Fernando Haddad this Wednesday (27), Brazil will have R$70 billion in savings over the next two years. The reactions, however, were not completely positive, according to economic analysts. One of them is Fernando Nakagawa, who during the program CNN Prime Time commented on the fact that the government did not announce measures that actually translate into spending cuts: “What the government proposes to cut is the future increase in that spending”. He then said that this practice is known in the market as “cut wind”. One of the biggest signs of the negative repercussion of the announced measures is the new rise in the dollar, which reached R$6 this Thursday (28).

Ruined expectation

Nakagawa comments that the fiscal package went in the right direction, but that is not enough at the moment. Despite the cuts related to parliamentary amendments, totaling R$14 billion, the amount is not effective. He argues that the government is trying to take one of the money amendments that already exists in the National Congress and direct it to the health area. According to the expert, there is a lack of boldness and vigor. It is worth highlighting that Brazil is known for being a country with very high expenses in relation to its public servants. An example of this are the courts of justice, where the country has already led the world ranking in spending in 2021.

_{Dollar reached R$ 6.11 this Friday morning (29) (Photo: reproduction/Barta4/Pixabay)}

What to expect?

For Nakagawa, what was announced is not enough. Therefore, there is a need for the government to make new adjustments. He even defined the situation as “temporary band-aid for a bigger problem”. The measures still need approval. One of the main points, the inclusion of taxation for salaries above R$50,000, was the subject of debate, with Haddad being the outvoted vote. The minister preferred that the issue be addressed after this first stage of the reform.

After the fiscal package announced, the dollar reached its highest nominal value in the country's history. The increase is felt in the pockets of Brazilians in several products, including those that are part of their daily routine. Fuels, for example, are priced in dollars on the international market. Foods such as meat, pasta and bread are also affected, in addition to medicines and electronics.

Featured Photo: Fernando Haddad announced cutting measures this Wednesday (27) (Reproduction/@MarchaHist/X)