When the Minister of Finance, Fernando Haddad, begins to present the lines of its proposal for the new fiscal framework to Congressional authorities and leaders, PT names once again put pressure on the portfolio holder, publicly and behind the scenes, demanding a flexible text, which provides for even a dose of fiscal expansionism to stimulate economic growth.
haddad already met this Monday morning with the leaders of the government in the Chamber, José Guimarães (PT-CE), and of the Senate, Jaques Wagner (PT-BA), and in the afternoon he will meet with the presidents of the Chamber, Arthur Lira (PP-AL)and the Senate, Rodrigo Pacheco (PSD-MG) seeking political support for the text, on the recommendation of the president Luiz Inacio Lula da Silva.
The minister works so that Lula approves a version of the fiscal framework by Saturday, before the Chief Executive, Haddad and other allies travel to China.
However, even without the text having even been disclosed, Haddad has been the target of friendly fire within the party itself, as has already happened in the matter of the reinstatement of the fuels.
The charge, according to an influential PT congressman, is to try to prevent Haddad from adopting a very orthodox proposal that makes the resumption of economic growth even more difficult, crucial for the success of President Lula’s third term. On Friday, the government reduced the official growth expectation for 2023 from 2.1% to 1.6%.
This parliamentarian privately said that whatever the framework configuration by the government, there will be complaints from the market for “ill will” and that a possible proposal that contemplates zeroing the primary deficit next year could make the current administration unfeasible and leave it, even more, depending on the so-called centrão, a group commanded by Arthur Lira in the Chamber.
One concern, according to this source, is with the rapporteur that the president of the Chamber will choose to conduct the proposal. Two names viewed with trepidation by PT members, he said, are deputies Mendonça Filho (União-PE) and Pedro Paulo (PSD-RJ).
In an interview with Globo News, Zeca Dirceu, PT leader in the Chamber, said he will suggest Lira names for the rapporteurship.
“The most important thing about who will be the rapporteur is that we have a good fiscal framework, new, modern, flexible and balanced. We cannot stifle the country’s finances”, he said, who defended a proposal without “any kind of radicalism”.
Over the weekend, PT president, federal deputy Gleisi Hoffmann, voiced on Twitter part of the concerns discussed behind the scenes by PT parliamentarians.
“If it is true that the economy will grow less this year according to indicators released by the government, then we need to increase public investment and not hold back any social investment. In moments like this, fiscal policy has to be countercyclical, expansionist”, she defended.
In a seminar in Rio de Janeiro this Monday morning on public accounts, it was the turn of BNDES president, Aloizio Mercadante, to comment on the topic. He said that Haddad can expect “total loyalty and partnership, contrary to the speculation that is published”, but he defended the debate around the framework.
“Now, don’t ask us to stop saying what we think and help the government to get it right”, highlighted the economist, founder of the PT and seen as more heterodox in the economy within the acronym, in comparison with Haddad.
“It has no expectation of replacing anyone, much less of competing,” he said.
Expected pressure
This morning, Haddad minimized the pressure he has been under and rejected the division between the “political and economic wings”.
“This type of division makes no sense, every decision is technical and political, even more so a decision of this importance, which is why it is the President of the Republic who gives the last word (on the framework)”, he said.
Behind the scenes at the Treasury, pressure from the PT has been treated naturally, that would be the role of the party. A source recalled that, in Lula’s first government, the PT called for the resignation of ministers and that in the end everything worked out well.
Last month, the portfolio holder won an important victory when he managed to guarantee the resumption of the collection of federal taxes on fuel amid a dispute of views between the economic team and sides of the government and the PT, who saw the measure as unpopular and inflationary.
An experienced PT parliamentarian, Senator Humberto Costa (PE) said that he has great confidence in Haddad’s work and defended that the framework take into account a degree of flexibility in cases of economic downturn and allow cash to be used when there is growth. He demanded patience from supporters.
“It is an unnecessary rush, you have to know (the proposal), listen to the minister and if that is the position, we will support it, which is the final position of the government”, he said. “You cannot have a pre-defined position; does not know and is already attacking”, he criticized.
Source: Moneytimes
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