Flávio Bolsonaro's fiscal adjustment promise contradicts campaign proposals, warns Miriam Leitão
Commitments made by the candidate and his advisors raise doubts about the feasibility of the proposed cuts
TL;DR
- Flávio Bolsonaro's campaign aims for a fiscal adjustment of R$150-200 billion in the first year.
- Proposed measures include pension increases above inflation, real minimum wage hikes, and preservation of parliamentary amendments.
- The candidate also ruled out privatizations and suggested continuing parliamentary amendments.
- These proposals conflict with the goal of reducing public spending and increasing revenue.
- Part of the financial market shows confidence in a potential fiscal adjustment under Bolsonaro, driven by resistance to the current government.
- Experts question the viability of such a large adjustment given past fiscal performance and the lack of detailed plans.
- The article also notes fiscal uncertainties with the current Lula administration, including diverging statements on fiscal targets and the impact of recent programs.
- Flávio Bolsonaro has also signaled intentions to alter the recently approved tax reform, potentially removing the 'split payment' mechanism.
- The feasibility of the promised R$150-200 billion fiscal adjustment remains unanswered, with a lack of detail on which expenses would be cut.