Brazil to slightly increase size of regional development fund
2023.10.23 16:32
© Reuters. FILE PHOTO: Brazil’s Finance Minister Fernando Haddad speaks during a news conference, at the Brazilian Embassy in Beijing, China April 14, 2023. REUTERS/Tingshu Wang/Pool/File Photo
BRASILIA (Reuters) – Brazilian Finance Minister Fernando Haddad said on Monday that the government will raise the amount directed to a regional development fund in order to secure the approval of a reform on consumption taxes in the Senate.
The fund, which will be used to compensate states for losses in revenue in the tax reform, had a value set at 40 billion reais in the bill approved by the lower house.
Haddad told reporters that the government will propose increasing it “by a little” without giving a figure.
The reform is set to restructure the country’s complex consumption taxes and boost the potential growth of the economy.
Earlier on Monday, Senator Eduardo Braga, who is in charge of the bill, said that the amount was still being negotiated, as state governors had their own counter-proposal.
“If there is no agreement by tomorrow night, we will present the text with the proposal that has already been agreed with the government,” he said. “It will go up, it will, that’s one of the important changes,” he added.
