Mansueto Almeida, the Chief Economist and partner at BTG Pactual, has voiced strong support for fiscal policies reminiscent of those implemented by former President Michel Temer in 2017. He emphasizes the need for minimizing public spending, particularly in social programs, as a vital approach to addressing Brazil's looming fiscal challenges. His statements come amidst growing criticisms of the economic management under President Luiz Inácio Lula da Silva, suggesting that immediate action is necessary to steer Brazil away from potential economic turmoil by 2027.

Almeida indicates that tapering public expenditure growth will be essential to mitigate risks that could arise in the Brazilian economy, positioning it as a key strategy to avoid complications more significant than those encountered over the previous four years. During a recent event at BTG, he referred to historical examples to illustrate that enforcing a fiscal discipline comparable to the spending cap established during the Temer administration is both feasible and practical. He recalls that the implementation of the Expenditure Ceiling Amendment (PEC do Teto) effectively narrowed funding for states and municipalities, which helped to stabilize the country’s economic framework at that time.

Furthermore, the debate surrounding fiscal responsibility is intensifying as the current administration faces accusations of excessive spending on social programs. Almeida’s advocacy for tighter fiscal measures suggests a potential shift in economic policy discourse as Brazil grapples with balancing social obligations against the necessity of sound fiscal governance. His insights reflect a concern that without decisive action to control spending, Brazil could enter a phase of precarious economic instability, necessitating immediate attention from policymakers.