Planning and Budget Minister Simone Tebet stressed the need for fiscal reform in Brazil, highlighting an opportunity for significant adjustments in late 2026. She warned that without reform, future governance would struggle with inflation and debt. Tebet criticized Congress for a lack of fiscal responsibility and endorsed proposals like a reduced workweek and exemption of import taxes on food to alleviate economic pressures and improve productivity.
Simone Tebet, Brazil’s Planning and Budget Minister, emphasized the urgent need for fiscal reform during an interview with GloboNews. She articulated that a significant opportunity for implementing a structural fiscal adjustment in Brazil’s government accounts will arise in November and December of 2026. Ms. Tebet warned that the succeeding president, regardless of their identity, will face insurmountable challenges in governing under the current fiscal framework, pushing the nation toward inflation and mounting debt.
Ms. Tebet expressed that significant fiscal adjustments will be essential to cut unnecessary expenses and instate a more stringent fiscal framework. She underscored the importance of ensuring public debt sustainability, lowering interest rates, controlling inflation, and stimulating economic growth. “We cannot afford to miss this window of opportunity,” Ms. Tebet insisted,
The minister acknowledged the excessive spending which resulted from the transition constitutional amendment passed at the end of 2022 aimed at restoring social programs. However, she assured that the government remains committed to meeting its fiscal targets without resorting to past failed policies or inventing subsidies.
Critiquing Congress, Ms. Tebet remarked on the expectation of experiencing more fiscal conservatism from lawmakers, which has not materialized. “This is not the fiscally responsible Congress we had envisioned,” she stated, implying that collaboration with Congress has proved more challenging than expected.
Conversely, she commended Gleisi Hoffmann, who is now the Minister of Institutional Relations, highlighting her unwavering loyalty to President Lula and her potential to drive necessary support for the government’s economic initiatives. Ms. Tebet noted that the government must demonstrate the courage to address difficult topics while maintaining dialogue with society, such as the proposal to shift to a five-day workweek.
She advocated for reducing the workweek, presenting it as beneficial for productivity and job quality. This shift, she argued, would also assist small businesses during the transition. Furthermore, Ms. Tebet announced that a new policy to exempt certain food items from import taxes would begin yielding results in approximately 30 days, which aims to help reduce food prices and may also encourage local production over exports.
In summary, Minister Simone Tebet has articulated the pressing need for fiscal reform in Brazil, particularly in light of the challenges presented by the current fiscal framework. She advocates for adjustments that prioritize economic stability and growth, emphasizing a significant opportunity in late 2026. Moreover, her criticism of Congress’s fiscal commitments and appreciation for new ministerial appointments reflect the complexities of navigating Brazil’s economic landscape. The proposed reduction in the workweek and tax exemptions for food items are indicative of the government’s multifaceted approach to enhance economic conditions while attending to rising food prices.
Original Source: valorinternational.globo.com
