According to the minister, the objective is also to “sweep away” 30 billion reais as compensation to states for revenue losses due to the fuel exemption adopted by the last government
OR Minister of Finance, Fernando Haddaddeclared on Friday 29th that he expects a solution on the payment of the court orders until December, to re-establish the entire deficit left by the previous government in 2024, the first year of fiscal framework and when the government aims to eliminate the primary accounts deficit.
The government asked the Federal Supreme Court (STF) to modification of the classification of court costs for the payment of this debt through the opening of extraordinary credit – therefore outside the spending limits of the new fiscal framework. The intention of the economic team is that the part of the judicial debt, the total stock of which amounts to R$95 billion, is considered a financial expense, which would eliminate the expense from the primary result.
This Friday, during the presentation of the results of Desenrola’s debt renegotiation program, Haddad stressed that he does not want to leave the bill to the next government, whoever will be president from 2027 onwards.
“We don’t want to dump the debt on the successor. Whoever the successor is, he has to put the country in order,” the minister said, adding that the goal is to “wipe away” not only the debt with court orders, but also 30 others billions of R$ related to compensation to states for revenue losses due to the fuel exemption, granted during the government of Jair Bolsonaro.
These debts are, according to Haddad, an illegal legacy left by the former president. “We are interacting with the Supreme Court to resolve this issue,” the minister said, referring to the court orders. “I hope that the issue will be resolved this year so that we can start next year with a fiscal framework that has erased all the damage caused to Brazil,” he added.
The minister explained that the government agrees that the debt must be repaid. He considered it a scandal that Brazil is defaulting on debts certified by the courts, when it comes to the constitutional amendment, passed in 2021, that sets a limit on the payment of court orders until 2026. The economic team argues, however, that the charges for this debt – or that which is not the main thing – are considered financial charges, Haddad highlighted.
Source: Terra
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