Even without including the Citizen Income program, for which the government has not yet found resources, the 2021 budget already has a gap of R $ 20 billion, according to calculations by Gabriel Barros, from BTG Pactual. This is yet another failure of Paulo Guedes’ management at the Ministry of Economy edit
247 – BTG Pactual estimates that the 2021 budget has already been exhausted even without including the Citizen Income program.
The explanation is that 55% of the government’s mandatory expenses, such as social security and assistance benefits, are corrected by INPC, which should close the year well above the IPCA, an inflation index that corrects the ceiling.
“Regardless of Renda, immediate and deep activation of the triggers is vital for the ceiling,” says economist Gabriel Barros, from BTG Pactual in a report, informs the Psubstance of Folha de S.Paulo.