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Government and banks against brazilian people

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Government and banks against brazilian people

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Michel Temer government is very committed to making the fiscal adjustment to ensure the realization of the so-called primary surplus that does not represent nothing less than the payment guarantee by the federal government of the public debt service that benefits mainly the financial system, particularly banks.

Michel Temer government is very committed to making the fiscal adjustment to ensure the realization of the so-called primary surplus that does not represent nothing less than the payment guarantee by the federal government of the public debt service that benefits mainly the financial system, particularly banks.

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Government and banks against brazilian people

  1. 1. GOVERNMENT AND BANKS AGAINST BRAZILIAN PEOPLE Fernando Alcoforado * Michel Temer government is very committed to making the fiscal adjustment to ensure the realization of the so-called primary surplus that does not represent nothing less than the payment guarantee by the federal government of the public debt service that benefits mainly the financial system, particularly banks. Michel Temer government prepared a Proposed Amendment to the Constitution (PEC 241-2016) sent to Congress to institute a new tax regime in Brazil with the establishment of limit for public spending which will limit spending adjusted for inflation of the prior year which will make public health and education spending, among others, are frozen in real terms. This fiscal adjustment is questionable because it penalizes the Brazilian people in general when they could get a lot more expressive and immediate results if are taxed the great fortunes, is increased the tax on financial institutions and is renegotiated with creditors to reduce the burden of the federal government with the payment of domestic public debt which amounted in 2015 to 45.11% (R$ 780 billion) from the Brazilian government budget. The IMF forecasts that the Brazilian public sector will continue with its unbalanced accounts by 2019 to get only in 2020 primary surplus that is economy to pay debt interest. There are numerous issues that need to be solved in Brazil to recover the Brazilian economy the main one being to drastically reduce the country's debt with the completion of an audit of public debt then to renegotiate with creditors in order to stretch your payment. But, which makes difficult this solution is the absence of a leadership in Brazil to be able to articulate a coalition of forces committed to the political, economic and social changes required for the country and end the submission of the federal government to the financial system. This is not the case of the President Michel Temer who, according to a survey by IBOPE, 68% of the population do not trust him. * Fernando Alcoforado, engineer and doctor of Territorial Planning and Regional Development from the University of Barcelona, is a university professor and consultant.

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