Planning minister says country needs to aim at primary surplus of 2% of GDP
Minister of Planning, Budget, and Management Nelson Barbosa said Thursday (Sep. 3) during a seminar entitled “The Role of the State in the 21st Century” that Brazil needs to find ways to bring the primary surplus close to 2% of the country's gross domestic product to preserve fiscal stability.
In Barbosa's view, the solution depends on the discussion about which services society may demand from the State, and how such services should be funded. “Therefore, the debate on the fiscal adjustment does have an influence on the discussion about the role of the State, but it's just part of [it]. The fundamental debate in Brazil and other advanced democracies today is what should be the role of the State in 21st-century society,” he argued.
He noted that citizens have increasing access to information and ways of exercising their rights and duties, as the demand for services and transparency also rises. The minister further declared that the State—whether right- or left-winged—is expected to promote economic development in line with fiscal stability and the inflation. He further highlighted the importance of the State in redressing inequalities and promoting social welfare. “Traditionally, the market economy is a powerful machine for producing growth and productivity, but, by itself, it only generates inequality and volatility. It is one of the duties of the State to promote greater stability and reduce inequalities. This debate is not just Brazil's,” he said.
For the minister, a country should not simply play a role in transfering income and fighting poverty. Universal public services—like education, health care, and public transport—should be further improved, through a great collaboration involving governors, mayors, and federal agencies.
In Barbosa's opinion, the amount earmarked for investment in infrastructure and education should be higher. “President [Rousseff] has made efforts and they're yielding results. Brazilian students have been given first place in competitions. Education is not a means to raise productivity, only—it also promotes democracy,” he remarked.
Translated by Fabrício Ferreira
Fonte: Planning minister says country needs to aim at primary surplus of 2% of GDP