Daoud comments on the government’s difficulty with the budget

In addition to the announcement of the minimum wage, the 2022 Annual Budget Bill, presented this Tuesday, 31, by the government, forecasts an economic growth of 2.51% in 2022 and an estimated inflation of 3.5%.

Canal Rural commentator Miguel Daoud explains that the budget is made up of mandatory expenses, which represent 94% of the Union budget, and discretionary expenses, which the government can use. This budget does not include Brazil Aid, which will be granted to 47 million families.

“Looking at this budget, I refer to the bases that prepare it. Inflation is forecasting 6.2%, however this year it will probably approach 10%. You further compress mandatory expenses, and other expenses that are linked to inflation, with this you reduce discretionary expenses, taking margin for the government” explains Daoud.

The expected 2.51% growth for the economy will not happen, according to the commentator. “We have the budget indexes not being in accordance with expectations for 2022. The government hopes that the precatório can be negotiated to move forward. And we have a salary that, if inflation is 10%, it needs to be readjusted as well.”