Calheiros praises and Cunha condemns recent proposals for fiscal adjustment
Senate President Renan Calheiro
Senate President Renan Calheiros praised the measures announced by the government on Monday (Sep. 14) that aimed at raising $16.79 billion, to end 2016 with balanced public accounts and produce surplus to meet interest payments on the Brazilian debt. According to Calheiros, the announcement shows that the government is trying to overcome inertia and is recovering its initiative ability.
Calheiros considered positive the government's plan to save $6.7 billion by cutting spending on machinery of government and by reducing some investments.
According to Senate President, before proposing measures, like the one aiming to create a tax based on the old CPMF (Temporary Contribution on Financial Transactions), the government needed to show its willingness to cut its “own flesh.”
Lower house speaker Eduardo Cunha opposed the measures. According to him, 75% of the cuts in the set of measures are not reducing the government's expenses. "The government is making an adjustment on others' account. So it's a pseudo cut of costs," he condemned.
About bringing back the old CPMF, a contribution of 0.2% on any financial transactions of citizens and companies, Cunha thinks it is very unlikely to have the measure approved. He noted that the governing coalition is very fragile and that the topic itself is controversial. He also condemned the fact that, according to him, the collection of the new CPMF will not be shared with states and municipalities like the old one and, in his view, it raises the chances of rejection.
Lower house speaker Eduardo Cunha
Lower house speaker pointed out that when submitted to Congress it will take time to deliberate about the CPMF and he fears that the success of a fiscal adjustment depend on revenues of difficult equation. He announced that even though he is against the new tax, he will not obstruct voting. "I will not block it because I'm against it. If it is ready to be voted, we'll vote," he declared.
Translated by Amarílis Anchieta
Fonte: Calheiros praises and Cunha condemns recent proposals for fiscal adjustment
