May 12, 2022

11:05

BRASILIA – Economists working directly on the government program of the Lula-Alckmin ticket said that the pre-candidate, when criticizing the so-called spending cap – a mechanism that limits government spending in order to limit the growth of government spending, did so referring to the current rule. Demoralized by Jair Bolsonaro’s government, when he decided to open a bag of electoral goodies, the spending cap has been punctured numerous times, to the despair of the market, which believed in the promises of fiscal responsibility of the Minister of Economy, Paulo Guedes. Lula was laconic when he said that in his government there will be no spending cap.

Profitable assets and education

The technicians of the PT campaign are working on the drafting of a text with the principles for a new fiscal framework for the mechanism. One option is to replace the ceiling by a rule of results, as existed in the Fiscal Responsibility Law during the Lula administration. The design will depend on “political relations, but several hypotheses are being considered. “I will not be irresponsible, but we will spend on what is necessary in profitable assets and education, one of the things that gives the fastest return so that we can produce,” says Lula.

Ballot box audit halted

Despite the announcement, made last Thursday, that his party would hire a private company to audit the TSE ballot boxes, neither Bolsonaro, nor the president of the PL, Waldemar Costa Netto, nor the campaign leadership, have yet presented the company that will do the job. There is no sign that the hiring of the private and independent company is underway. In view of the novelty of the idea, there are those in Congress who believe that it has been one more of Bolsonaro’s rants to inoculate him from a possible defeat at the polls, and to avoid bad news for the government.

Bolsonaro vs. STF

Speaking of bad news for Bolsonaro, the unification of the Supreme Court (STF) inquiries investigating him for spreading fake news and leaking classified documents, with the investigation that deals with digital militias, does not bring any harm to the president. Quite the opposite, in fact, since the bureaucracy of joining the processes takes time, and time spent always helps those being investigated. Besides, the president will not be indicted while Augusto Aras is the Attorney General.

Pazuello candidate in Rio

The former minister Eduardo Pazuello gave up on running for elective office in Amazonas. Despite his tragic health condition, at the peak of the pandemic, Pazuello is targeting Rio, where he has set up residence, and is engaged in setting up a strategy for a political future in the state. The reserve general will not participate in the elaboration of the government program of Bolsonaro’s reelection campaign, but has made some suggestions. Affiliated to the PL, he is preparing to run for federal deputy. Or he could fly higher: vice-president in the ticket of governor Cláudio Castro, Bolsonaro’s ally.