Guedes denies use of precatories to finance Citizen Income

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Economy Minister Paulo Guedes (Andressa Anholete / Getty Images)

BRASILIA (Reuters) – Economy Minister Paulo Guedes said on Wednesday that the economic team had never proposed to break the ceiling or wrongly finance programs, in reference to directing resources to Citizen Income with the limitation on payment of precatory.

At a press conference, Guedes said his team is studying how to merge 27 programs that already exist as a way to consolidate a more robust cash transfer program, which represents a landing after the end of emergency aid this year.

He stressed that, as it is a permanent expense, it will have to be covered by a permanent income.

According to Guedes, the government is evaluating the behavior of expenses with precatories because it understands that they have shown “rampant” growth, but denied that it is a solution for a cash transfer program.

The minister also reiterated his intention to promote payroll tax relief, which he described as “the cruelest and most filthy” of taxes, but he did not talk about how to finance the onslaught.

“We want to relieve everyone and forever, not only for those who lobby in Brasilia and for just another year,” he said.

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