Auctions revenue should cover fiscal impact

The extra revenue from the oil and gas auction held at the end of March should cover the fiscal impact of the recent overturning of presidential vetoes, which have maintained the refinancing of debts of micro and small enterprises and of rural producers, said the new Finance Minister , Eduardo Guardia. According to him, the folder is still raising the fiscal impact of the decisions of the National Congress.

On March 29, the maritime blocks of the 15th Round of Bids of the National Petroleum, Natural Gas and Biofuels Agency (ANP) generated R $ 8 billion in the Union. According to Guardia, the government initially expected to get $ 500 million from the auction.

"We had a gain of revenue in the auction, two weeks ago, of R $ 7.5 billion. Every two months, under the terms of the Fiscal Responsibility Law, we must redesign the revenue and reestimate the expense and ensure compliance with the target. So that money, which could be over-resource for the year, will now probably have to be faced with the cost of overturning the vetoes, "he said.


The new minister declined to comment on further cuts in spending in March and April. According to him, it will still be necessary to wait for the evolution of the income and the behavior of the economy before deciding anything. Regarding the provisional fiscal adjustment measures that became invalid on May 8, Guardia said that budget programming did not take into account the revenue gain and the cost savings of the measures.

"All this has already been adjusted. We take into account in financial programming that we would not have these revenues. We have been working very prudently on our side. These measures have already been discounted from our revenue projection, and have no impact on meeting the fiscal target. On the contrary, if they are carried out, we will have a situation of slack, "he said.

At the end of last year, the government had sent a bill to eliminate payroll relief for almost all sectors of the economy and issued two provisional measures, one to postpone by one year the readjustment of federal civil service and increase the contribution of the servers for Social Security and another to anticipate the collection of income tax from exclusive investment funds. None of the proposals advanced in Congress, and an injunction by Minister Ricardo Lewandowski suspended the postponement of the increase for the servers.


At the first press conference after taking over the Treasury, Guardia defended the full review of tax incentives. According to him, it is necessary to look at the granting of benefits to companies and sectors of the economy with caution because the tax expenditure (money that the government gives up collecting) has increased a lot in recent years. At the moment, the economic team discusses Rota 2030, an incentive scheme for the automotive sector, which will replace Inovar Auto, which ended at the end of last year.

According to the minister, the priorities in its management will be the commitment to fiscal management (through the fulfillment of the fiscal goals, the spending ceiling and the Golden Rule), the privatization of Eletrobras, the simplification of the Social Integration Program ) and the Contribution for the Financing of Social Security (Cofins), the reform of the Tax on the Circulation of Goods and Services (ICMS) and proposals to reduce bureaucracy and raise the productivity of the economy.

Regarding the Golden Rule, which prohibits the government from borrowing to finance current expenses, Guardia stated that since the Constitution can not be amended because of federal intervention in Rio de Janeiro's security, the Budgetary Guidelines Law (LDO) or the 2018 Budget will contain a forecast of expenditures to be executed through special credit that will have to be approved by the deputies and senators. This Thursday (12), the government sends the 2019 LDO project to Congress. Source: Agência Brasil

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