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Ministry of Economy and IDB debate reforms for country's growth

Economic development

Diagnostics point to solutions to leverage public policy and make the economy more effective

Reforms to boost growth and make the economy more effective were the main focus of the discussions - focused on the macroeconomic, microeconomic, agricultural and administrative areas - held on Tuesday morning (3/9) at the Reforms for Growth seminar. The meeting was promoted by the Secretariat of Economic Policy of the Ministry of Economy (SPE / ME) and the Inter-American Development Bank (IDB).

The bank presented a diagnosis of Brazil's development challenges, highlighting that public debt and fiscal results are threats to economic growth. He stressed the need for the government to prioritize the control of public spending and the effectiveness of public policies.

The special secretary of Finance, Waldery Rodrigues, said in the opening lecture that the seminar is a great opportunity for an integrated analysis of the reforms, as it looks at the macroeconomic, microeconomic, agricultural and administrative areas. “In order for all these policies to have the proper potential, it is imperative to correct high, fast-paced public spending with allocation problems,” he said.

According to Fabiano Bastos, IDB regional economic advisor for Southern Cone countries, who presented the bank's diagnosis, “the government has been implementing reforms and reducing expenses, but it needs to be more effective, ensuring fiscal sustainability, improving spending efficiency. strengthening fiscal federalism and promoting digital solutions. ”

Sustained growth
The Secretary of Economic Policy, Adolfo Sachsida, said that the measures promoted by the government, especially those related to its secretary, have been promising.

He stressed the results of the economy in July and August: “To me, August seems to be the end of a complicated period in the Brazilian economy. From September onwards, we will see a return to somewhat more sustained long-term growth. The change will not come overnight, but starting in September, we will consistently get out of this complicated situation, ”he said.

IDB's diagnosis shows that this effectiveness involves ensuring fiscal sustainability, improving public efficiency, strengthening fiscal federalism, and digital solutions. At the event, fiscal and agricultural sector reforms, as well as control over public spending, were presented in the thematic panels for discussion.

Pedro Calhman de Miranda, deputy secretary of the SPE's Microeconomic Policy and Infrastructure Financing, advocated changes to the Bankruptcy Law to expand the tax authorities' ability to help businesses recover so that they can grow back. "Today this contribution is limited to the installment of debts and the judicial sphere," he said.

Digital solutions
For Gleisson Rubin, Deputy Special Secretary for Digital Redemption, Management and Digital Government, technological expansion is a major factor in improving public management. According to him, it is necessary to migrate to a model that increases productivity, with digital solutions that reduce expenses and reduce the public machine.

“In the first seven months of the year alone, the government increased digital services from 41 percent to 46 percent, giving citizens quick access to the services they need,” said the secretary, adding that “1 percent of the digital solution represents 0.5 percent in GDP ”.

Gleisson Rubin also recalled that digital solutions such as access to scholarships, certificates and registration for exhibitions provide an annual savings of R $ 3.3 billion to the government. “Only this year were 311 new digital services,” he celebrated.

In the agricultural area, the themes focused on the need to revise the current rural credit model and promote the migration of a credit system to a risk management system, with actions that foster the development of a business environment and stimulate financial innovation