Postponing court orders hurts credibility, says economist about new Bolsa Família

 

Postponing court orders hurts credibility, says economist about new Bolsa Família

Camargo has been heard over the past few months by the Minister of Economy, Paulo Guedes, on the need to reformulate the Bolsa Família

by CNN Brasi Business, in São Paulo*

Aiming to make room in the Budget for a new Bolsa Família with payments above R$300, the government is preparing a Constitutional Amendment Project (PEC) to make it possible to pay for debts recognized by the courts, called precatório.

"If I had to define priorities (for a new social program), I would certainly not postpone the payment of court orders," José Márcio Camargo, chief economist at Genial Investimentos and economic coordinator of the pre-campaign to the presidency of the former president , told CNN Minister of Finance Henrique Meirelles. 

"Debts have to be paid the way they were defined, at the time they were made. It doesn't matter if they are government or

private. This is fundamental for giving credibility to the economy. When you make a constitutional amendment changing the structure of debts , this is a problem," he says.

Camargo has been heard over the past few months by the Minister of Economy, Paulo Guedes, on the need to reformulate Bolsa Família. 

Camargo emphasizes, however, the importance of the government suggesting a source to finance a new social program that requires more from the Union's already limited budget, respecting the spending ceiling, a constitutional limit that limits spending to the previous year's inflation.

"Before the ceiling rule, no one knew where the money came from when you wanted to increase a program as important as Bolsa Família. Not now," he says. 

Camargo also says that Bolsa Família is a cheap program for the public coffers, serves the poorest population and is "extremely important, so it needs to be preserved and, if possible, increased". He considers, however, that the structure of Brazilian social programs could be much more efficient than it is. "Social spending in Brazil favors the elderly at the expense of children, people, in large part, from the lower middle class and not poor," he says.

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font      redaction    https://www.cnnbrasil.com.br/business/2021/08/02/adiar-precatorios-fere-credibilidade-diz-economista-sobre-novo-bolsa-familia

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Economy

precatory

federal budge