Rui Costa: package writing should be completed this week; announcement depends on Lula

(Reuters) – The Minister of the Civil House, Rui Costa, said on Monday that the wording of the package of fiscal measures promised by the government is expected to be finalized this week, but the announcement date will be defined by President Luiz Inácio Lula da Silva after the text was presented to him.

In an interview with GloboNews, Costa also stated that Lula has already defined that the government will not change investments in the areas of health and education, considered by the president as essential to the country.

The head of the Civil House also guaranteed that the government will follow the fiscal framework “to the letter” and said that the adjustments to this year’s Budget to be announced by the government’s Budget Execution Board (JEO) on Friday will prove this commitment.

Refusing to detail the size of the budget adjustment to be announced on Friday or to advance points already agreed in the fiscal spending reduction package, Costa stated that it is not “reasonable” for spending cuts to fall solely on the Executive Branch.

He also said that the way the fiscal framework was approved by the Legislature implies cuts in resources allocated to parliamentary amendments. The minister also said that the Constitution provides that any blocking or contingency of resources must affect the Three Powers proportionally.

Costa also said that the financial market acts in a “speculative” way and that there are many people betting big against Brazil. The head of the Civil House guaranteed, at the same time, that those who bet against the country will lose.