Finance Minister Fernando Haddad criticized the previous Bolsonaro administration for mismanaging public accounts, despite some arguing that a primary surplus was achieved in the last year of Bolsonaro's term.
Last week, Brazil's Finance Minister, Fernando Haddad, made a strong statement claiming that the previous government under Jair Bolsonaro had engaged in a "kind of rape of public accounts, a crazy thing." This remark refers to the financial management of the country during Bolsonaro's presidency, sparking criticism from some who noted that in the final year of his term, the federal government achieved a primary surplus of 0.5% of GDP. However, critics of Haddad highlight that this surplus was influenced by extraordinary factors such as a significant rise in revenue from the extractive sector, driven by soaring oil prices, and high inflation during 2021 and 2022.
It is crucial to recognize that the surplus reported in 2022 was the first positive figure since 2013 and was largely temporary. The Haddad administration's own budget proposal sent to Congress in August 2022 estimated a primary deficit of 0.6% of GDP for the following year, which indicates that the improvement in finances was not expected to continue. This expected deficit underlines the challenges that the current government anticipates in managing the country’s finances amidst post-pandemic recovery and rising public expenditure.
Moving forward, this discourse around public accounts may signal deeper ideological divides between the current government and the previous administration, particularly on issues of fiscal responsibility and economic management. Haddad's statements and the ensuing debate highlight the critical need for transparency and accountability in government financial practices, as Brazil navigates economic recovery in a complex global economy.
