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Rombo da Previdência is "extremely serious" says Minister of Planning

Economic reforms

For Dyogo Oliveira, postponing the reform of the social security system would put at risk the economy and the poorest sections of society

The Minister of Planning, Development and Management, Dyogo Oliveira, on Friday (17) classified the Social Security gap as "extremely serious" and defended the approval of the pension reform to avoid risks to the Brazilian economy. 

"[Social security] is headed for a deficit next year of almost R $ 200 billion," he said, in announcing a bimonthly budget and revenue budgeting document. "It is an extremely serious situation that puts at risk the entire economy of the country," he added.

In his evaluation, besides the economic damages, the increase and collapse of the social security system would have negative effects, especially for poorer sections of society. "It places the poorest people at risk," the minister said.

Dyogo asked for wisdom in evaluating the proposal of the Government of Brazil, which he evaluated as "smooth", as it provides for transition rules for those who are about to retire and also maintains acquired rights.

Currently under review by the Chamber of Deputies, pension reform is considered essential to avoid a collapse of public accounts in the future. It foresees the adoption of a minimum age of 65 for men and 62 years for women to access the benefit and prevent further growth of the social security deficit.

Source: Government of Brazil