The recommendation of the International Monetary Fund (IMF) for countries to avoid premature withdrawal of fiscal stimulus granted to combat the effects of the new coronavirus pandemic has increased pressure on the Brazilian government as the end of emergency aid and the state of calamity approaches, scheduled for the end of the year.
At the G-20 virtual summit, managing director of the International Monetary Fund (IMF), Kristalina Georgieva, at the weekend, argued that global authorities should avoid withdrawing tax relief initiatives prematurely. According to her, it is now time to prepare for a synchronized boost of investment in green and digital infrastructure to reinvigorate growth, limit scars and meet climate targets.
The IMF recommendation caused concern in the Brazilian economic team that has been defending fiscal consolidation and pointed out to representatives of the multilateral organization that the situation in Brazil is different. “The IMF did not pay attention to the specific situation in Brazil, where the set of instruments used to combat the economic effects of the pandemic was higher and resulted in higher expenditures than in other countries,” Economic Policy Secretary Adolfo told Estadão Sachsida.
According to him, given its specific characteristics, Brazil is at a time when it is more important for the poorest population to defend fiscal consolidation than the expansion of public spending. “Brazil is today in a situation where, if we spend too much, inflation rises, interest rates rise, unemployment increases, investment and GDP fall,” he points out. For him, defending fiscal consolidation is not a matter of ideology, but a policy that protects, especially, the poorest population.
*The article has been translated based on the content of Source link by https://www.terra.com.br/economia/fmi-joga-pressao-no-governo-ao-falar-em-estimulo-fiscal,c9b50146d57a4ec36eb8331b586b3236esrg4kbq.html
. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!