SAO PAULO, Dec 11 (Reuters) – Brazil’s Financial system Ministry on Sunday rejected assertions by president-elect Luis Inacio Lula da Silva’s transition group that the outgoing administration was leaving authorities funds “bankrupted.”
The Financial system Ministry stated in an announcement that gross debt will attain 74% of GDP by the top of the 12 months, with a main surplus (excluding debt prices) of 23.4 billion reais, the primary since 2013.
“This would be the first authorities ending its time period with debt ratios decrease than in its starting, the debt was 75.3% of GDP in 2018,” the assertion stated.
Final week, the Planning and Price range group in Lula’s camp stated President Jair Bolsonaro is leaving the Brazilian state “bankrupted,” based on former minister and transition group member Aloizio Mercadante.
Brazil pays worldwide monetary establishments $1.23 billion subsequent 12 months, 20% under the $1.56 billion that was due in 2016, the ministry stated.
The federal government stated bills to assist probably the most weak a part of the inhabitants because the starting of the COVID-19 pandemic have prevented raises to public servants by means of 2021.
Regardless of the ministry’s denial of fiscal issues, senator Marcelo Castro, who’s main funds invoice negotiations, stated there are not any obtainable assets to pay for various authorities applications subsequent 12 months.
Lula’s transition group is in talks to approve a invoice permitting 145 billion reais in bills above the present legally allowed ceiling.
Lula takes workplace on Jan. 1. The leftist ex-president narrowly defeated Bolsonaro in an Oct. 30 runoff election, a political comeback that ended Brazil’s most right-wing authorities in a long time.
Reporting by Nayara Figueiredo, writing by Tatiana Bautzer; modifying by Grant McCool
Our Requirements: The Thomson Reuters Trust Principles.
