BRASILIA (Reuters) – Brazil’s Finance Minister Fernando Haddad said on Tuesday that the government’s new fiscal rules and tax reforms should calm investors and the central bank, and that people are concerned about approval of both. Agree on urgency.
After a closed-door meeting with administration officials, top lawmakers and business leaders, Haddad told reporters that he expects both houses of Congress to approve new fiscal rules by the second half of the year, and only The House of Commons is likely to vote
fiscal rules that would replace stricter spending caps, limiting spending growth to the previous year’s inflation rate. The tax reform aims to simplify the tax code, but the details remain unclear.
“These will bring great peace of mind to investors, monetary authorities and ministers, enabling them to work ‘for the good of the country,'” he said.
Brazil’s proposed fiscal framework bill will be voted on by the lower house on Tuesday after discussions with party leaders. The bill was formally tabled in the chamber on Tuesday afternoon.
Member of the lower house responsible for the bill Claudio Cajado, who has previously proposed tighter fiscal rules, said late Tuesday that the bill would offer the government the possibility to increase spending by 70% of taxes as long as It does not exceed 2.5% of the national inflation rate.
