Fiscal balance essential to reduce inflation, says Rousseff

President Dilma Rousseff declared Thursday (Jan. 7) during breakfast with journalists at Palácio do Planalto, the seat of government, that the fiscal balance is essential to reduce inflation in the country. According to her, the government's goal is to bring inflation to the center of the 4.5% target"as soon as possible".

"With the fiscal balance, it is possible to produce a surplus of 0.5% [of the gross domestic product (GDP)] and create the conditions to bring inflation to the center of the target." The primary surplus is the savings made by the government to pay the interest on public debt.

According to the president, internal political issues, like the adoption of the Temporary Tax on Financial Transactions (CPMF) and the extension of the Untying of Federal Revenue (DRU), are more important than discussing the initiation of impeachment proceedings against her by the Chamber of Deputies. For her, to approve the CPMF  "is not only a matter of fiscal rebalancing. To approve the CPMF tax can help solve the country's public health problem," she reported.

Rousseff declared that it is necessary to counteract "a myth": that the tax burden in the country is growing. "On the contrary, it is 33.4%. Considering only federal taxes, it falls to 22%," she said. The president said she expects this year to be better than 2015 and pointed out that she will strive to resume growth and ensure economic stability.

The president said the country will need some reforms, like Administrative Overhaul and Social Security Reform. When asked about the corruption allegations against her government, she commented that her life has been turned upside down, but that no one can accuse her of anything. Rousseff also declared that her relationship with Vice-president Michel Temer is "great".

Translated by Amarílis Anchieta