Lula promises economic continuity, omits spending cuts in government plan

The government program presented by Luiz Inácio Lula da Silva's presidential campaign outlines a commitment to continuity in economic policies, seeking to deepen the current fiscal framework, tax reform, industrialization program, and the Novo PAC (Growth Acceleration Program). The campaign's stated goal is to defeat the liberal-conservative project. The program identifies the current 14% annual interest rate as a significant economic problem, akin to past high inflation, due to its role in concentrating income and causing economic disorganization. The strategy involves maintaining the fiscal framework to foster sustained interest rate reductions.

While the program mentions controlling expenditure increases, it does not detail specific spending cuts. It proposes reforms to the parliamentary amendment system, which consumes a substantial portion of discretionary funds, and suggests eliminating inefficient tax exemptions and benefits. The plan aims for a positive primary fiscal balance, supported by economic growth.

Investment in key sectors such as logistics infrastructure and social services is a central theme. The program envisions a new iteration of the Novo PAC for public works, continued concessions for roads and railways, and renegotiation of existing contracts. It also plans to utilize Petrobras to boost investments in exploration and stimulate the real estate market through the "Minha Casa, Minha Vida" program. Furthermore, government procurement will be used to support Brazilian companies, and measures are proposed to deepen the domestic capital market and encourage institutional investors as long-term financiers.