Economy

Bolsonaro watches Lula’s program and criticizes the press; watch video

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President Jair Bolsonaro (PL) criticized the press this Monday (24) after watching the election time of his opponent in the race for the presidency, Luiz Inácio Lula da Silva (PT).

The scene, witnessed by Sheet, took place during lunch at a self-service in Vila Planalto, in the Federal District. Other ministers accompanied the president, among them Paulo Guedes (Economy).

Among the criticisms leveled at the government by the PT propaganda aired on Monday, are the end of the Auxílio Brasil of R$ 600 in December, the cuts in the resources of the Popular Pharmacy program, the skyrocketing food inflation and the secret budget.

After seeing the PT insertion, Bolsonaro comments to Guedes: “You talk to the press, but they don’t publish anything”. See the video:

“There is a lack of manliness and character to face and discuss issues. They lie during election hours all the time, talking about ‘Bolsolão’. We know that the PT supported the secret budget, that is, [essa é] perhaps the lowest campaign in history that I have seen,” the president told reporters as he left the restaurant.

The economic issue became a sensitive point for Bolsonaro’s campaign last week, after a report by the Sheet show a plan by Guedes for the economy, which provides, among other points, to stop readjusting the minimum wage according to the inflation registered in the previous period.

The issue began to be widely explored by his rivals on social networks, in particular by federal deputy André Janones (Avante-MG), who became the main Lula organizer on social networks. The parliamentarian and other PT activists began to publicize that the Bolsonaro government could reduce the minimum wage.

This Monday, the TSE (Superior Electoral Court) determined the removal of posts on social networks that mentioned this reduction of the minimum.

Because of the repercussion, Guedes and Bolsonaro himself used their participation in interviews and podcasts to deny the possibility of reducing the minimum wage. During the Inteligência Ltda podcast, the president even promised a real gain from the minimum wage, although he acknowledged that the Ministry of Economy is in favor of deindexation.

“Paulo Guedes talks a lot about de-indexing the economy. So what does he want to de-index? The percentage remains undefined. And, at the moment, you are guaranteed at least […] at the very least, there will be a real increase, more than inflation”, said Bolsonaro during his participation on Thursday night on the Inteligência Ltda podcast.

Guedes’ plan, revealed by the Sheet, intends to recast the legislation on the country’s public accounts. The intention is to reformulate the spending ceiling and “break the floor”, that is, to stop the growth of expenses that today put pressure on the Budget – among them the social security benefits or those linked to the minimum wage.

The minister treats the matter as a legacy of his administration, but the proposal should only be made official if Bolsonaro wins on October 30th. In that case, a PEC (Proposed Amendment to the Constitution) would be presented the day after the election.

The design of the new fiscal architecture would remove the need for an extra-ceiling spending license (called a “waiver”) — although the plan also establishes a number of new exceptions to the spending cap, in addition to minor correction of some spending.

In this way, it is estimated within the portfolio that it would be possible to accommodate about R$ 100 billion additional within the ceiling in 2023, honoring electoral promises such as maintaining the Auxílio Brasil floor at R$ 600, the payment of a 13th for female beneficiaries and the recomposition of funds for programs such as Farmácia Popular

One of the main measures under study is the de-indexation of the minimum wage and social security benefits. Today, they are corrected by the INPC (National Consumer Price Index) of the previous year, which guarantees at least the replacement of the loss due to the increase in prices observed among families with incomes of up to five minimum wages.

bolsonaro governmenteconomyelectionselections 2022Jair BolsonaroleafMinistry of Economypaulo guedes

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