Brazil’s Finance Minister Says Fiscal Reform Will Calm Investors, Central Bank

Finance


BRASILIA (Reuters) – Brazil’s Finance Minister Fernando Haddad said on Tuesday that the government’s new fiscal rules and tax reform should calm investors and the central bank, and there was consensus that approval of both is urgent. said there is.

After closed-door meetings with government officials, parliament and business leaders, Haddad told reporters that both chambers of Congress will approve new fiscal rules in the first half of this year, but only the lower house will vote on tax reform. said it was likely. within that time frame.

Fiscal rules replace tighter spending caps that limit spending growth to the previous year’s inflation rate. The tax reform aims to simplify tax law, but the details remain unclear.

“This will give investors, financial authorities and ministers a fair amount of calm so they can work for the well-being of the country,” he said.

Haddad praised the discussion on both issues. He said the ministry was happy with its dialogue with lawmakers on spending issues so far.

After the meeting, Speaker Arthur Lira said Brazil’s proposed fiscal framework bill would be voted on by the House of Representatives between Tuesday and Wednesday after consultations with party leaders.

Rep. Claudio Cajado, who is in charge of the bill in the House of Representatives, had previously proposed stronger fiscal rules.

Reported by Bernardo Callum. By Peter Frontini.Editing: David Gregorio

Our standards: Thomson Reuters Trust Principles.



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