Rousseff pledges to propose solution to budget deficit

President Dilma Rousseff said today (Sep. 2) that the government's decision to submit a budget plan for 2016 with a predicted deficit of $8.1 billion is a sign of transparency and by no means implies that the Executive branch will shirk its responsibilities in public accounting. The government will send an addendum to the proposal “when the government has more information,” Rousseff declared.

“We're recognizing that there is a deficit, we're being transparent and making clear that there is a problem. We will not shirk our responsibility to propose a solution to the problem. What we want—because we live in a democratic country—is to forge our way out. We're not shifting our responsibility to anybody else, because it'll always be ours, but it's important to emphasize that we will pursue [a solution]. We're considering every alternative,” the president said in an interview at the Palácio do Planalto, after the reception ceremony for the Brazilians awarded at the WorldSkills competition.

The president acknowledged the economy is going through difficult moments due to the decline in revenues, but said the government believes the situation will improve through investments in infrastructure, energy, and an increase in exports. According to Rousseff, when the scenario changes, the government will be capable of submitting to Congress an addendum to the budget plan. “We'll send it when we think the discussion has matured. When we believe there are the conditions to do that, we'll provide Congress with more information,” she added, without specifying any dates.

Rousseff also talked about the return of the CPMF tax (Provisional Contribution on Financial Transactions), which was considered and subsequently dismissed by the government. She said she does not favor the tax, but did not rule out the creation of new sources of revenue for the government. “I'm not eliminating any source of revenue, I'd like to stress that, so if there's a chance for us to include that source, we will.”

The president also stood up for Finance Minister Joaquim Levy, denying he has been alienated from or somehow weakened among cabinet members. Levy opposed sending the budget with the estimated shortfall of $8.1 billion, but, as was the case in other deliberations, his vote was not backed by the majority.

Rousseff went on to note that much of what has been said about the relationship between Levy and other members of the economic staff is not true. “Saying that Minister Levy is isolated or worn out is a disservice to the country. He's not. Not as far as the government is concerned. We have the utmost respect for him,” she noted.

On the future effects of the administrative overhaul announced by the government in an attempt to reduce the budget gap, the president stated that the measure will make a greater impact on administration than it will on tax revenues. By the end of this month, the government is expected to name the ten ministries to be shut down of the total 39. Other announcements to be made soon are a reduction in the number of positions of trust, and other means of cutting down maintenance costs.

Translated by Fabrício Ferreira