The Ministry of Finance will work to prevent the local authorities’ financing model from functioning as a new source of fiscal risk, having as an accelerating effect the stock of public debt, the Secretary of State for Finance and Treasury, Osvaldo João, said on Saturday.
Since the year 2017 that the public debt is above 60 percent of the Gross Domestic Product (GDP) and the intention is to reduce by 70 percent of the GDP in 2024, the official said during the balance of the 11th Advisory Council of the Ministry of Finance being held since Thursday.
Osvaldo João explained that the sector’s challenge is to continue fiscal consolidation, through the reform and modernisation of the national tax system, with the aim to improve the country’s budget balance, adding that preliminary results show there was surplus in 2019.
“While the Government is concerned with improving the national tax system, the social sector is another bet, with the creation of the Monetary Social Transfers programme, which aims to benefit one million vulnerable families through direct subsidies”, João said.
Source: Angop
