Fiscal balance crucial to fostering development, says new finance minister

Balance in public s is an essential to maintaining social justice and foster the country's development, said Brazil's new Finance Minister Joaquim Levy. In his inauguration speech, he highlighted that the fiscal adjustment encourages investments and the creation of jobs by restoring the confidence in the economy.

“There's very little doubt that the Brazilian democracy has once again proved its excellence by reiterating its consensus on fiscal discipline as imperative for economic and social growth as well as sustainable development,” Levy declared. “Fiscal balance is crucial to expanding opportunities for the people, especially the young. It's the key to credit increase, which make it possible for entrepreneurs to invest and generate employment,” he added.

The new minister did not rule out the possibility of raising taxes in an effort to resettle public s. “Possible tax adjustments will be pondered over, especially those aimed at stimulating household savings and redressing tax disparities between sectors,” Levy noted.

Levy went on to announce his ministry's new secretaries. Tarcísio Godoy will head the Executive Secretariat, thus occupying the second highest position in the Finance Ministry. Jorge Rachid is once again in charge of the Federal Revenue Secretariat, a post he held during former President Lula's first term. The new secretary for the National Treasury is Marcelo Santilli Barbosa. Additionally, Afonso Arino de Melo Franco Neto has been appointed secretary for Economic Policy. As for International Affairs, Diplomat Luís Balduíno has taken over the reins, while economist and career official Pablo Fonseca has retained its office as head of Economic Affairs. Adriana Queiroz, Attorney-General for the National Treasury, is also to remain in her position.

Former Finance Minister Guido Mantega did not attend the inauguration ceremony and was represented by the ministry's executive secretary Paulo Caffarelli, who mentioned the measures adopted in December to curb public spending, like restricting insurance money for the unemployed and reducing subsidies for Brazil's Social Development Bank, BNDES.

Caffarelli claimed that extending the deadline for the payment of the unemployment insurance does not mean a labor right has been lost. He also reiterated that the policy of increasing public spending to boost the economy helped Brazil keep unemployment at the lowest level in the country's history. However, he claims, it is time to bring public s back into balance, adding that 2015 will be the year for fiscal adjustment.

André Richter has contributed to this article.

Translated by Fabrício Ferreira

Relacionadas

Rousseff nominates 13 new ministers

Rousseff announces three of new economic staff