Social and fiscal responsibility have returned.

The fiscal framework for balancing public accounts is a work of economic and political engineering by the Lula government, a structural measure for the reconstruction of the country. The result of ongoing dialogue with the most important political leaders in Congress, the new fiscal rules are being received in a positive environment for debate and voting. Members of opposition parties participated in meetings with Minister Fernando Haddad, demonstrating that the new fiscal framework is so relevant and urgent that it transcends partisan differences. All the government's efforts are aimed at getting Brazil back on its feet.

The need for a new fiscal framework has become imperative, given the ideological rigidity of the previous rule, which stifled the budget to the point of preventing essential public spending. The spending cap did not fulfill the objective for which it was created, which was to provide a basis for economic growth. 

During the previous administration, the spending cap was breached every year, with the highest peak in spending occurring in election years. This strict measure resulted in a fiscal blackout at the end of 2022. Between 2016 and 2022, the sharp deterioration in public finances and the budget jeopardized the maintenance of essential public services and the functioning of the public administration. The budget deficit left for 2023 was R$ 235 billion. A failure!

The spending cap stipulated that, even in a situation of low GDP growth, the rule would imply a reduction in primary spending relative to the performance of the economy and tax revenue. In the economic field, the legacy of recent years has been marked by low growth and high inflation, loss of purchasing power of wages, and loss of credibility. The new fiscal framework restores predictability and confidence in the conduct of the government's economic policy by establishing regulatory bands for revenue and spending. The current spending cap now has a band with real growth of primary spending between 0,6% and 2,5% per year, excluding FUNDEB (National Fund for Basic Education) and the minimum wage for nursing staff from the limits.

Given the scale of the global economic and social crisis, with repercussions in Brazil, the government positions the State as a driver of sustainable development and social inclusion, and projects investments in all areas, in partnership with the private sector, for the reconstruction of the country. It commits to observing the new rules of the fiscal framework agreed upon with the political parties in the National Congress and with the entire Brazilian society, so that there is no shortage of resources for public investments in economic development and emergency social programs. The Fiscal Framework foresees more resources returned to the budget for poverty eradication, recovery of the budget for essential public policies, and more room for public investment.