In search of revenue and other weekly topics
This week's Talking Points:
In search of revenue:
The Ministry of Finance is working on a series of instruments to increase tax collection. Some matters are already in progress in the National Congress, others should be sent in August, and others should await the completion of Tax Reform, currently under analysis in the Senate. We summarize these initiatives and provide an outlook for each one.
The government focuses on the social aspect:
The Desenrola program, the Lula government's debt renegotiation program, took effect last week. The Desenrola program focuses on people with a gross income of up to two minimum wages. Through measures that reduce food insecurity and encourage consumption, Lula is signalling that the promises that were decisive for his victory in 2022 remain a priority. We discuss the implications of these programs for Lula’s popularity and that of the PT party.
Lula and the international agenda:
In his third term, one of President Lula's (PT) priorities has been to restore international relations and trade agreements, and resume visits to member countries of the blocs of which Brazil is a part. In the first seven months of government, he has visited 15 countries, totaling almost 40 days of travel. The visits have yielded him positive results, such as the presidency of Mercosur, which he will lead for the next six months. But they also placed him at the center of controversies.
Political clashes and the STF:
Three episodes have taken place in recent weeks that have placed the Supreme Federal Court (STF) back in the political fray. These episodes indicate that, despite the improvement in the institutional environment since Lula was elected president, groups linked to Bolsonarismo continue to target the STF, and the STF, in turn, has ended up being pushed into this polarized political debate, which continues to produce tension.
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