Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
Brazil finance minister says fiscal reforms will calm investors, central bank
Published May 23, 2023 03:02PM ET
Updated May 23, 2023 06:27PM ET
© Reuters. FILE PHOTO: Brazil's Finance Minister Fernando Haddad speaks during a news conference, at the Brazilian Embassy in Beijing, China April 14, 2023. REUTERS/Tingshu Wang/Pool
BRASILIA (Reuters) -Brazil's Finance Minister Fernando Haddad on Tuesday said that the government's new fiscal rules and a tax reform should calm investors and the central bank and that there is consensus on the urgency of approving both.
After a closed-door meeting with government officials, top lawmakers and business leaders, Haddad told reporters he expects both houses of Congress to approve the new fiscal rules before the year's second half, while only the lower house will likely vote on the tax reform in that time frame.
The fiscal rules would replace a more rigid cap on spending that limits growth in expenditures to the previous year's inflation rate. The tax reform aims to simplify the tax code, though details remain murky.
"These will give a great deal of tranquility to investors, the monetary authority and ministers, so that they will be able to work for the well-being of the country," he said.
Haddad lauded discussions around both issues, saying his ministry is so far comfortable with the dialogue with lawmakers around spending.
Brazil's proposed fiscal framework bill is set to be voted by the lower house on Tuesday after discussions with party leaders. The bill was officially presented in the chamber Tuesday afternoon.
Claudio Cajado, the lawmaker in charge of the bill in the lower house who has previously proposed to toughen the fiscal rules, said later on Tuesday the bill will provide the government the possibility of increasing spending by up to 70% of any increase in tax revenues, as long as it does not exceed a rate of 2.5% above the country's inflation.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.