“The fiscal framework will not survive the next government”, says economist Fabio Giambiagi

1970-01-01 02:00:00

O Roda Viva this Monday (27) discusses the victory of Javier Miley already Argentina. The inauguration of the new president will be on December 10th, but the controversies with the Brazil have already started.

To answer all questions on the topic, the program welcomes the economist Fabio GiambiagiBrazilian raised in Argentina and specialist in public finance.

In the program, the expert talks about the fiscal framework, a measure that presents a set of rules for controlling public accounts. In other words, it is a replacement for the spending cap, implemented during the Temer Government.

In practice, the growth in expenses of the Unity may be higher than the country’s official inflation, as long as it falls within a range from 0.6% to 2.5% per year. If the accounts are within the target, expenses are limited to an increase of 70% in relation to primary revenues.

For the economist Fabio Giambiagieconomic policy will end with the next government.

“There is an intrinsic incompatibility between the general rule of the framework and the particular rules that the government is in favor of. The framework is not valid for 2023, and it will not be valid for 2024 either, it will even be in force in 2025 or 2026. We are seeing the criticisms that the Workers’ Parties themselves direct at the framework now, when spending is flying. This will be child’s play given the internal tension that the government will experience in 2025 and 2026 on the way to the 2026 general elections”, he states.

Economist analyzes the need for balance in Brazil’s fiscal adjustment.

According to Fabio Giambiagi, the fiscal framework should actually start operating in 2025, generating internal tension in the government.#RodaViva pic.twitter.com/ufs0haQ47D

— Roda Viva (@rodaviva) November 28, 2023

“Total spending growth will have to be contained by the rule to something around 1.5 or 2%. I think the framework will not survive the next government”, he adds.

The panel of interviewers will be made up of Alberto Gasparpresenter of the program Foreign Legion, Eleonora Gosmancorresponding to Profile, Luciana Dyniewiczreporter for Estadão, Leda Balbinoeditor of the newspaper The globee Sergio LamucciExecutive Editor of Economic value.

Watch the full program:

With presentation of Vera Magalhãesthe program will air live from 10pm on TV Cultureno broadcaster websiteno app Culture Play and on social media X (the old Twitter), YouTube, Tik Tok e no Facebook.