Bolsonaro to send new fiscal rule to Congress, details to follow

Presidential hopeful Flávio Bolsonaro intends to scrap Brazil's current fiscal rule and introduce a new framework if he wins the upcoming election, according to his campaign's political coordinator, Senator Rogério Marinho.

However, Marinho stated that the specifics of this proposed new fiscal rule will only be disclosed after a hypothetical victory, emphasizing that "Entering this conversation now is not something that interests us." The current fiscal mechanism, implemented during President Lula's administration, is described by Marinho as a "sieve" that lacks genuine commitment to fiscal responsibility. He pointed to the "PEC da Transição" (Transition Amendment), which he characterized as the "egg of the serpent" leading to a pattern of inflated revenue projections and underestimated expenditures.

Bolsonaro's government plan, released recently, includes generic pledges for fiscal responsibility without detailing how these would be achieved. This strategy aims to prevent accusations of cutting social programs or infringing on rights. Marinho blamed the current Lula administration for fiscal mismanagement, citing a 14% annual interest rate – far above the projected 7% during Bolsonaro's term. He argued that instead of fiscal adjustments, the government resorted to tax increases and early royalty payments, destabilizing fiscal policy.

Marinho asserted that a new fiscal parameter is essential to place public debt on a sustainable path, suggesting that even the current government recognizes the inevitability of such a change. The proposed overhaul aims to address what the campaign views as the current administration's fiscal irresponsibility and to re-establish a more prudent financial course for Brazil.