Paulo Guedes: Welfare, privatization and tax simplification are "pillars of new management" | Economy

• Lack of control over the expansion of public spending is "(19659006) Brazil was corrupted and stopped growing due to overproduction of goods and services
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President Jair Bolsonaro and his team have an absolute commitment to democratic institutions.

Created by President Jair Bolsonaro, the Ministry of Economy has unified the Ministries of Finance and Planning and is part of the Ministry of Development and Foreign Trade

The minister also asked to "help" parliamentarians to get the pension reform approved. According to him, if the government and the legislature manage to approve a reform on this issue, the country will have ten years of growth to come.

Asserting that the increase in public spending is the "worst hurt" of the economy, Guedes said the expansion of spending was the "Achilles' heel" of all attempts to stabilize the economy.

The public accounts have recorded deficit revenue (expenditure over revenue) for the last five years, and the government is planning a total of 139 billion rubles for this year.

According to the new Minister of the Economy, public spending accounted for about 18% of gross domestic product (GDP) four decades ago and has since increased steadily.

"We have experienced all the financial malfunctions related to this process, such as moratoriums and inflation.We are now breathing in the shadow of tranquility, but it's a fake tranquility, economic stagnation, "he said.

The new economic commander also said he wanted to unify seven or eight taxes into a federal tax, adding that he would also seek to decentralize resources, that is, to allocate more revenue to the states. and to municipalities.

Paulo Guedes again defended a vast privatization program and declared that the ideal was that the tax burden, which corresponds to the level of taxes paid in relation to the country's wealth, should not exceed 20% of GDP . Last year, it accounted for 32.43% of GDP. "Above, it's the fifth of hell, Tiradentes died for that," he said.

In the badessment of the new commander of the economy, the spending ceiling, mechanism allowing expenditures not to exceed the previous year's inflation, can not be sustained without structural reforms such as social security.

"The ceiling is there, but no wall of support falls, these walls are the reforms, we must deepen the reforms," ​​he said. According to the minister, social security has become a "gigantic device of perverse transfers".

"Social security is currently a factory of inequality, which legislates on the most important pensions, which thinks to have, on the Brazilian people, on the smaller ones," he said.

He has also criticized loans from public banks in recent years. He pointed out that they were not intended for microcredit, but for "big programs where private pirates, corrupt bureaucrats and swamp creatures have joined the Brazilian people".

The new head of the economy also defended the need for administrative reform in the public sector. He cited the existence of more than 300 careers in the federal government and reported that positions of trust were already removed.

"You have to carry out an administrative reform, you have to work on it.I have heard 30% cuts in DAS [Direção e Assessoramento Superior] only in the neighborhood where I work." Pau eats there ", a- he said.