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Budget Law Act Rapporteur explained that it is necessary to adopt "hostile" measures to reduce spending for the next government
Agência Brasil
access_time [19659004] July 4, 2018, 12:15 pm
The draftsman of the Budget Guidelines Act (LDO), Senator Dalírio Beber (PSDB-SC) (19459014) (19459014) of 2019 due to the economic and fiscal crisis in the country The opinion presented by Berger this week admits no type of readjustment
The senator explained that it is necessary to adopt measures "not nice" not to increase mandatory spending for the next government He reiterated that there will be no substitutes in the event of vacancy in the public service, except in the fields of education, health, public security, defense, social badistance. Adjustments that have already been approved on an ad hoc or phased basis will not be affected either.
"We produce a report very carefully, aware of the degree of difficulty currently facing the country. We have had negative numbers in recent years and the trend is that these numbers will get worse in the years to come. "We do not want to switch to a government in 2019 that we do not know yet who it will be."
Asked about the political resistance that the restriction to tax incentives may face in the productive sector, Beber explained that it is reasonable for the government to badess the situation of each sector for ten years and find a balanced. In its report, Beber states that tax exemptions should not exceed 2% of the country's gross domestic product (GDP).
The proposal follows a recommendation of the Federal Court of Accounts (TCU), which pointed out that last year the country stopped raising 354 billion reais with tax exemptions, which represents 5, 4% of GDP and 30.7% of primary revenue. Reducing the volume of tax incentives could, according to the TCU, halve the pension deficit.
"We now expect that the amount of tax exemptions for 2019 will reach more than R $ 300 million.In terms of concessions of fiscal incentives in other countries, the maximum that this represents is about 2% of GDP.It is a recommendation we make in the LDO, in that in 10 years, we also need in Brazil to have at most 2% of GDP in tax exemptions. "
The senator commented the issue of pension reform should also be addressed to ensure the balance of public accounts. Although he did not include in the LDO report, the rapporteur argued that this issue should be one of the priorities of the legislative and executive branches of the next year.
Beber hopes that his report will be approved before the parliamentary recess, scheduled for July 17. The Joint Budget Committee will meet on Wednesday (4) to discuss the report.
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