Finance Minister: No links between "Bolsa Familia" cuts and fiscal effort
Finance Minister Joaquim Levy said Tuesday (Dec. 15) that it is a mistake to associate cuts in the Bolsa Família conditional cash transfer program with the fiscal effort. 
Finance Minister Joaquim Levy said Tuesday (Dec. 15) that it is a mistake to associate cuts in the Bolsa Família conditional cash transfer program with the fiscal effort. Deputy Ricardo Barros, rapporteur for the annual budget bill in Congress, has proposed a $2.5 billion cut in the program budget as part of the effort to meet the fiscal target of 0.7% of the Gross Domestic Product (GDP), but according to Levy, linking the two issues is inappropriate.
“The fiscal target is the fiscal target and Bolsa Família is Bolsa Família,” he said arriving at an infrastructure seminar in Brasília.
According to Levy, now it is time the government focus on important measures that were submitted to Congress two or three months ago, which, if approved, can avert the 35% cut in Bolsa Família.
The measures, which include provisional presidential decrees (MPs) 690, 692, and 694, could ensure an additional $2.5 billion for the public coffers.
MP 690 raises the Tax on Industrialized Products (IPI) levied on drinks and introduces new rules for taxes on royalties. MP 692 introduces progressive tax rates on capital gains, and MP 694 increases taxing of interest on stockholders' equity.
Minister Levy explained these measures will improve the progressive distribution of income tax, balancing the burden of the fiscal effort more evenly by increasing taxes for higher income earners.
“I don't think anyone would hide behind Bolsa Família to avoid taking the required steps to put Brazil on the right track, one of protecting jobs and securing the stability and peace of mind of all families,” the minister said.
Translated by Mayra Borges
Fonte: Finance Minister: No links between cash transfer program cuts and fiscal effort
