The Minister of Finance, Fernando Haddad, announced on Wednesday night (27) a series of measures to cut spending and increase federal government revenue.
Read the full statement below:
“In recent months, we have worked intensely to develop a set of proposals that
reaffirm our commitment to a fairer and more efficient Brazil. This is not an effort
isolated from President Lula’s government, but a joint construction, which seeks to guarantee
lasting economic and social advances.
Today, we have clear signs that we are on the right path. Brazil not only recovered
lost time and space, but returned to occupy its prominent place in the world, among
the ten largest economies. Now, we grow consistently, with a GDP greater than
3% per year. Unemployment, which punished our people in the previous period, placing
million families below the poverty line, today it is among the lowest in our
history.
More families are returning to decent income and work. We guarantee real readjustments for
the minimum wage and we increased the Income Tax exemption range for those who earn
up to two salaries. Programs such as Minha Casa, Minha Vida and Farmácia Popular won
a new impulse. And new programs such as Pé-de-Meia, Desenrola and Crédito
arrived to combat school dropout, help people regain credit and
support those who want to undertake.
The fight against privileges and tax evasion allowed us to improve public accounts. If not
recent past, the lack of tax justice maintained privileges for the richest, without
advances in income redistribution, we now collect in a more fair and efficient way.
We comply with the law and correct misstatements. It was like this with the taxation of funds in paradises
taxes and exclusive funds for the super-rich.
But we know that major challenges remain. Given the external scenario, with conflicts
armed forces and trade wars, we need to take even more care of our home. That’s why
We are taking the necessary measures to protect our economy. Therefore,
we will guarantee stability and efficiency and ensure that the advances achieved are
protected and expanded.
We have already returned to workers the real gain in the minimum wage. This right,
forgotten by the previous government, it returned with President Lula. And with the new rules
proposals, the minimum wage will continue to rise above inflation, in a sustainable and
within the new tax rule.
To ensure that public policies reach those who really need them, we will
improve the control mechanismswhich were dismantled in the previous period.
Fraud and distortions delay service to those who need it most. For the retirements
militarywe will promote more equality, with the establishment of a minimum age for
the reservation and limitation of pension transfers, in addition to other adjustments. These are changes
fair and necessary.
To serve families who need it most, the salary bonus will be assured to those who
earn up to R$2,640. This value will be adjusted for inflation in the coming years and will become
permanent when it corresponds to one and a half minimum wages. The measures also
combat privileges incompatible with the principle of equality. We will correct excesses and
ensure that all public agents are subject to the constitutional ceiling.
Together with the Federal Supreme Court and the National Congress, we improved the rules of the
budget. The overall amount of parliamentary amendments will grow below the limit of
tax rules. In addition, 50% of amendments from Congressional committees will now go
mandatory for public health, reinforcing the SUS.
These measures I mentioned will generate savings of R$70 billion over the next two
years and consolidate this government’s commitment to the country’s fiscal sustainability.
To guarantee the results we expect, in the event of a primary deficit, it will be prohibited to
creation, expansion or extension of tax benefits.
Fighting inflation, reducing the cost of public debt and having lower interest rates is a central part
of our humanist view of the economy. The Brazil of today is no longer the Brazil that
I closed my eyes to the inequalities and difficulties of our people. Who
earn more must contribute more, allowing us to invest in areas that
transform people’s lives.
We therefore reaffirm our commitment to Brazilian families: protecting the
employment, increase purchasing power and ensure sustainable economic growth.
Exactly for this reason, today we also announce the largest income reform of our
history. Honoring the commitments made by President Lula, with the approval of the
income reform, an important part of the middle class, which earns up to R$5,000 per month,
will no longer pay Income Tax.
It’s a fair Brazil, with less taxes and more money in your pocket to invest in your little one
business, boost commerce in your neighborhood and help your city grow. The new
The measure will not have a fiscal impact, that is, it will not increase government spending. Why
Those with an income of more than R$50,000 per month will pay a little more. All without excess and
respecting established international standards.
You know: this measure, combined with the historic Tax Reform, will cause great
Some of the Brazilian people pay neither Income Tax nor Product Tax
of the basic food basket, including meat. Correcting much of the unacceptable tax injustice,
which deepened social inequality in our country.
Dear Brazilian men and women, the decisions we take, starting today, require
courage, but we know that they are the right choices because they will guarantee a stronger Brazil,
fairer and more balanced tomorrow. Have faith that we will continue building a country where
May everyone prosper through the strength of their commitment and work. Know that the government of
President Lula is a partner of every Brazilian family on this journey.
With an efficient government, we are building a stronger and fairer Brazil. Very
Thank you and good night.”
