Bricklayer: Under Temer, the federal machine is already starting to grind to a halt.
"As has been known for some days, the National Treasury's result hit a new negative record in July: R$ 20,152 billion, the worst result for the month in history. In history," comments journalist Fernando Brito on the catastrophic result of Michel Temer's government accounts. "The federal machine is already starting to grind to a halt and will get worse," he states.
By Fernando Brito, from brick - As was already known a few days agoThe National Treasury's result hit a new record low in July: R$ 20,152 billion, the worst result for the month in history. In history.
In 12 months, even discounting the advance payment of court-ordered debts (which was normally made in December), the deficit amounts to R$ 165,6 billion.
This includes the R$ 25 billion from the repatriation of money that was held abroad, carried out last October.
The calculation that must be made, without this revenue that was not repeated – nor will it be repeated – is that of a deficit of R$ 190 billion.
To reach the R$ 159 billion target of the new and expanded "deficit target," assuming that revenue and expenditure remain aligned with last year's figures (and despite the contraction and postponement of expenses, due to the lack of response from tax collection, monthly deficits continue to fall), it is therefore necessary to raise more than R$ 30 billion in extraordinary revenues.
It's possible, if the sale of Cemig's power plants, the oil auctions, and whatever remains of the Refis program after passing through the Chamber of Deputies go through, and everything else goes "absolutely right."
But, on the expenditure side, "everything going right" has meant postponing payments (including payroll) and frantically cutting operating expenses. The amount spent last year, from January to July, was R$ 90,5 billion and this year it dropped to R$ 71,8 billion, a decrease of more than 20%.
The federal machine is already starting to grind to a halt and will get worse.