“If we have to run a deficit, let’s do it or we won’t win the election,” says government leader Lula

The head of the government in the chamber, Jose Guimarães (PT-CE), said this Saturday, the 9th, that there should be a budget deficit next year if necessary. The deputy estimated that the pursuit of the goal of eliminating the deficit of state accounts could be the reason for the party’s defeat in the municipal elections. He also defended the need to “mobilize militancy well” if the party can emerge victorious in the mayoral race in 2024.

Guimarães talked for about 15 minutes at the table Electoral Conference PT, in Brazil. “I just talked to the president there The Blues (Hoffman). If we have to have a deficit, we have to. Otherwise, we will not win the elections in 2024,” he said.

Guimarães’ speech reflects an assessment in the PT that the government may have to allocate (pre-emptively block) resources from parliamentary amendments and investments from the Growth Acceleration Program (PAC) to meet the fiscal target next year, which will hurt the channeling of funds to PT allies in the provinces .

At the same event, Glacy and the Minister of Finance Fernando Haddad, differed in the direction of the government’s economic policy. After the PT president criticized the goal of closing the budget gap, the head of the economic group said “it’s not true” that the government account deficit is creating growth. “There is no such correspondence, that’s not how the economy works,” Haddad said. The speech of the President of PT caused a negative reaction of economists and opponents of the government.

The row within the government over the fiscal target escalated in late October when Lula said the government was “unlikely” to close the gap in the public accounts in 2024. Considering this statement, the Minister of Civil Affairs House, Rui Costapressure has mounted to revise the target to a deficit of 0.50% next year.

However, Haddad managed to convince the president of the republic to maintain the zero target until at least March, while he tries to approve the revenue-raising projects in Congress.

José Guimarães said that the party should “mobilize well”. “It is clear that Lula’s government bears a very large financial responsibility. Everyone knows that. Now we have a problem,” Guimarães said at the PT election conference.

At the same event, the Minister of Institutional Relations Alexander Padilyain charge of the government’s political coordination with Congress, argued that the PT’s landslide victory in the 2024 municipal elections is “decisive” in trying to change the balance of power in the legislature in the 2026 dispute.

“Today, the way the political debate is going, the budget organization, I have no doubt that the extreme right is looking at the municipal elections, trying to project leaders to fight for the federal government in three years, to compete in state elections, to strengthen relations with mayors,” said minister.

“I have no doubt that if we want to change the reality of the National Congress, to help Guimarães in the Chamber of Deputies, we have to think about this election in a way to achieve a political and electoral victory,” Padilla added. .

Guimarães was in the same row with the minister. “We must link 2024 with 2026 to achieve 2026 with the re-election of Lula and change the balance of power between the Senate and the Federal House,” he said.

The MP assessed the first year of Lula’s government as “victorious”. “We end the year with the government and Brazil,” he said. “I don’t even know how, (Alexander) Padilla, we approved so many things in the House. When I saw the defeat in front of me, inside, when I talked with Padilla, with President Lula, we became stronger.”

During this first government, Lula faced a series of political discontents from the Centrão parties, the center-right political group that dominates Congress. Deputies and senators demanded greater agility in issuing parliamentary amendments and demanded the appointment of allies to positions in the executive branch. In May, the government was defeated in its attempt to change the sanitation system, as well as the fake news bill.

As Estadão/Broadcast revealed, Congress is asking the government for R$6 billion – R$4 billion of additional resources for deputies and R$2 billion for senators later this year – additional resources to unlock the economic agenda.

The report on the interim measure dealing with ICMS subsidies was to be tabled and read this Wednesday the 6th, but ended up being postponed until next week. The sports betting bill has also been delayed until next week in the Senate, while tax reform awaits results in the Chamber of Deputies.

This Friday, the 8th, the PT approved a preliminary version of a political resolution criticizing the Centrão. “The conservative and physiological forces of the so-called Centrão, strengthened by the absurd rule of imposing a budget in the presidential regime, have a disproportionate influence on the legislative and executive branches of government, delaying, embarrassing and even trying to distort the winning political agenda in the presidential elections,” it says. document fragment.

In order to approve his agenda in Congress, Lula made a number of ministerial changes during the year to include the Centrão parties in the Esplanade. The government’s union with this political group included Andre Fufuka (PP) for the Ministry of Sports and Silvio Costa Filho (Republicans) for ports and airports.

In addition, the presidency of the Caixa Econômica Federal was taken by Carlos Antonio Vieira Fernández, appointed by the President of the Chamber Artur Lira (PP-AL). The command of the National Health Foundation (Funasa) is also under negotiation.

At the conference, Padilla also defended that the PT federation of PCdoB and PV, led by PT members, welcomes members of other parties who want to be part of their ranks. “This is not the time to do DR with those who were embarrassed (previously supporting Lula’s government),” the minister said. In addition, he stated that it is necessary to participate in political disputes with Bolsanistas in the municipalities.