The next government will attack a better country, says Secretary of the Treasury

In a stocktaking video released Monday by the Ministry of Finance, Mansueto recalled that three years ago, the interest rate was above 14% per annum and accumulated inflation in 12 months has exceeded 9%, and today the Selic is at 6.5% and inflation is less than 4%. In addition, he said, the country's economy was down 3.5%.

"The next government begins in a situation much better than that of Brazil three years ago.Brazil at the beginning of 2019 is a country where inflation is less than 4% [ao ano] with a rate of Interest rate of 6.5% and expected inflation of about 4% over the next three years and an economy that is returning to a recovery we call cyclical Entrepreneurs have become more confident and invest more ", said Secretary of the Treasury, which will be maintained in the government of Jair Bolsonaro

Mansueto said that the present moment also favors the debate on reforms. For him, if the next government can approve changes in social security and tax system, Brazil can achieve sustainable growth of at least 3% per annum.

"If we can do all these reforms, we can consolidate a very positive scenario for a country that will experience new growth of 3% or more a year, with low interest rates and low inflation, and improves the lives and well-being of all, "he said.

Tax Adjustment

The Secretary of the National Treasury also stated that a fiscal adjustment in the public accounts implied to contain the growth of mandatory expenditures, particularly social security expenditures and salaries of civil servants and employees.

"For Brazil, to make the fiscal adjustment, we must control the growth dynamic of compulsory spending, otherwise there will be no fiscal adjustment, and among the obligatory expenditure items, two expenditures which heavy weight on the budget of the Union are the expenditure of active staff, with inactive public sector, and social security expenditure, called RGPS [Regime Geral da Previdência Social]. "

Photo: ABr

] Mansueto Almeida baderted that the imbalance in the public accounts of the states was due to the fact that the federal government had guaranteed loans even to the units of the Federation which were in a serious financial situation

"The Minister of Finance had the the power to forgive, to exempt a loan even for those states whose financial situation was very unfavorable.When we arrived at the Ministry of Finance, we changed this The Minister of Finance no longer has the power to forgive. Some States spend more than 70% of their net current receipts on staff costs. It was very important to increase the debate on fiscal adjustment in the states, including the control of the wage bill and the burden of the inactive, "he explained, from the Ministry of Finance, the Attorney General of the Treasury, Fabrício Da Soller said the recovery of social security debtor companies would not be enough to contain the sector's growing deficit, with only social security debts ranging from Rs. The prosecutor stated that even if the total amount was recoverable, it would be sufficient to cover only two years of the auto-immune deficit.

"As I said before, 40% of this amount is recoverable, 60% is not. They even say that if we had debtors, it would not be necessary to reform social badistance, which is a big mistake. You are among the large debtors of social security companies that no longer exist, such as Varig, Vasp, Transbrasil, TV Manchete. They are therefore companies that will never or hardly have the funds to make the payment, "he said.

For Da Soller, what solves the social protection deficit is the reform of the sector proposed by the Temer government last year Constitutional Proposal No. 287 (CEP) sets a minimum retirement age of 65 for men and 62 for women, in addition to 39, increase the minimum contribution period for the full payment of benefits