São Paulo Governor Slams Lula’s Fiscal Policy, Predicts Economic Slowdown
São Paulo Governor Tarcísio de Freitas criticized President Lula’s fiscal policy during a meeting with municipal health secretaries. He warned of a challenging year ahead due to excessive government spending.
Tarcísio predicted inflation, higher interest rates, and economic deceleration as consequences of the current fiscal approach. The governor emphasized the massive fiscal challenge facing Brazil.
He stated that the country is not doing well and is overspending. Tarcísio cautioned that this would impact inflation and interest rates, leading to economic slowdown. He warned municipal officials of potential drops in revenue, affecting various funding sources.
In addition, Tarcísio presented his liberal agenda and São Paulo‘s Investment Partnership Program as solutions to the looming crisis. He plans to use privatization proceeds as savings.
He expects to generate R$ 50 billion ($8 billion) from ten auctions in 2025. The governor explained that privatization, cost-cutting measures, and tax benefit revisions were implemented to address these challenges.
The economic slowdown, according to Tarcísio, is occurring sooner than expected. He criticized politicians who make unrealistic campaign promises to win elections.
The governor shared his own campaign experience, where he refused to promise new hospitals due to budget constraints. Tarcísio de Freitas is considered a potential candidate to replace former President Jair Bolsonaro in the 2026 presidential election.
However, he has repeatedly denied intentions to run, stating he will seek re-election as São Paulo’s governor. His criticism of the current administration and economic predictions position him as a vocal opponent to the federal government’s policies.
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