The Special Secretary for Treasury and Budget of the Ministry of Economy, Bruno Funchal, said today that, with new inflation projections, the space in the spending ceiling next year could be between R$17 billion and R$25 billion. He pointed out that, if there is no payment in installments of expenses with court orders, the space for the expansion of any government spending next year is “zero”.
At an XP event, Funchal confirmed that, without a consensus to approve the reform of the Income Tax that would provide the tax bases for the expansion of spending on Bolsa Família – renamed Auxílio Brasil -, the government is looking for alternatives and can use it as a source of I fund resources from the tax subsidy review plan, which the economic team must present to Congress next month.
“Plan B” was anticipated by broadcast, Grupo Estado’s real-time news system.
According to the secretary, the use of extraordinary credit to cover expenses such as emergency aid will depend on the evolution of the pandemic.
“I don’t know if we would be able to justify extraordinary credit with a vaccinated population. Following the downward trend in deaths, I see it more likely to move from emergency aid to a structural program,” he concluded.