Pandemic spending cannot be passed on to future generations – Brazil’s economy minister

RIO DE JANEIRO, BRAZIL -Spending to tackle the novel coronavirus (Covid-19) pandemic cannot be passed on to future generations, Economy Minister Paulo Guedes said on February 10th. He argued that discussions on reinstating the emergency aid should be coupled with fiscal responsibility, seeking a source of funds to finance the renewal of the benefit.

The Minister’s statement came after a meeting with the President-elect of the Joint Congressional Budget Committee (CMO), Deputy Flavia Arruda (PL-DF), and the rapporteur of the 2021 Budget, Senator Márcio Bittar (MDB-AC). According to Guedes, the money to fund a new round of emergency aid must come from this year’s budget, rather than from increased public debt.

“We have a commitment to Brazil’s future generations. We must pay for our own wars. If we are at war with the virus, we must shoulder it rather than simply pushing this cost to future generations,” said the Minister.

Arguing that economy and health go hand in hand, Guedes said that Chamber and Senate Presidents Arthur Lira and Rodrigo Pacheco are committed to balancing social demands with fiscal responsibility. “This social awareness and fiscal responsibility commitment is precisely the mark of a reformist Congress, of a determined government, and of the constructive political leaderships that we have in Brazil today,” he said.

Dialogue

Flávia Arruda and Bittar visited the Ministry of Economy after their confirmation in office and the establishment of the CMO. The Committee chair said she will hold daily talks with the economic team until the vote on the 2021 Budget, submitted to Congress in August last year, but not yet passed.

On leaving the meeting, the deputy reiterated her commitment to mass vaccination and the rebound of production and consumption. “The vaccine is a priority for the country at this time, the distribution of income and employment and economic recovery,” she said.

The vote on this year’s budget is expected to occur by late March, when the CMO expires. By the end of March, the current CMO will be replaced by another committee, chaired by the Senate, which will discuss the Budget Guidelines Law and the 2022 Budget.

With respect to the 2021 Budget, Bittar did not provide details on the proposal. The rapporteur merely said that he will not speculate on proposals to reinstate the emergency aid and that an opinion will be presented after debates, taking into account the fiscal responsibility advocated by the economic team.

“What we can say is that we must pass a Budget at this moment of crisis which will continue to focus on the Brazilians who need the State and also welcome the resumption of fiscal austerity. This is the principle,” declared Bittar.

Source: Agencia Brasil