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Edition of Sunday, November 15, 2026

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Macroeconomics

Alckmin Defends Fiscal Adjustment and Denies Impact on Low-Income Groups

Brasília time 1 min read

Alckmin Defends Fiscal Adjustment and Denies Impact on Low-Income Groups
Photo: Vice-Presidência da República, CC BY 2.0, Wikimedia Commons

Vice President states that balancing public accounts is a necessary condition for lowering interest rates in Brazil

Vice President Geraldo Alckmin defended the fiscal adjustment proposed by the federal government during an interview in Brasília. He stated that the spending restraint measures do not harm the low-income population. According to the Vice President, all social benefits remain preserved in the current planning.

The government's central goal is to reach a surplus and eliminate the deficit in public accounts. Alckmin points to fiscal balance as fundamental to allowing interest rates to fall in the country. He argues that reducing interest rates directly benefits the most vulnerable Brazilians.

The government's position faces resistance within its own allied base in Congress. Lawmakers from the PT, PCdoB, and PSOL parties are organizing an alternative package focused on increasing taxation on the wealthy. Deputies such as Lindbergh Farias and Talíria Petrone criticize potential cuts in areas like health and education.

The government seeks to accelerate the progress of the fiscal package in the legislature. The Senate has already approved the main text of the bill and the analysis of specific amendments is expected to take place next week. Coordination is now focused on the Chamber of Deputies to ensure the approval of the measures proposed by the economic team.

The debate reflects the tension between the need for fiscal responsibility and demands for social spending. While the executive branch prioritizes controlling accounts, part of the governing base insists on reviewing tax exemptions and taxing the super-rich. The political landscape remains in dispute as the government tries to maintain the adjustment trajectory.

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