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Discover how high tax collection contrasts with the fiscal deficit
The year of 2024 will be marked in the history of Brazilian economy as a period of extremes. On the one hand, we saw a record tax collection, reaching levels never before recorded.
On the other hand, the fiscal deficit broke new records, highlighting the government's inability to balance its accounts. This contradiction between a high tax collection and a growing deficit reflects serious structural problems in the country's economic management.
Record collection in numbers
During the first ten months of 2024, the government collected more than BRL 2 trillion in taxes, with monthly averages exceeding the $ 200 billion. According to data from gov.br, each month brought new records, highlighting January, which raised $ 280 billion, and October, which reached $ 247 billion. This performance was driven by measures such as the increase in tax rates, the creation of new taxes and increased monitoring.
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Although the government argues that these measures are necessary to finance social programs and investments, the results have not been positive. The population feels the weight of these taxes in their pockets, while the expected positive impact is not reflected in economic growth.
Why does the deficit continue to grow?
Even with a unprecedented collectionThe public Accounts remain in the red. In 2024, the accumulated fiscal deficit between January and September reached $ 155,2 billion, overcoming the gap of $ 94,3 billion from the same period in 2023. Projections indicate that the nominal deficit could approach BRL 1 trillion until the end of the year.
The main problem is in the overspending of the government, which increased significantly with programs such as pensions, super salaries e social services. These expenses, in addition to not stimulating economic growth, create an imbalance that directly affects the investor confidence and the financial market.
The role of the Central Bank and the crisis of confidence
The current economic situation also highlights the role of central bank. To contain the rise of the dollar, which exceeded the R$6,19, the institution was forced to sell part of the international reservations, burning about $ 190 billion in a few days. However, these measures were not sufficient to stabilize the currency, further aggravating the crisis of confidence on the market.
Investors, both domestic and foreign, are withdrawing their resources from Brazil due to the lack of economic planning and political instability. This capital outflow accelerates the fiscal imbalance, increasing the government's dependence on domestic debt.
Projections for 2025 are not optimistic. Experts point out that next year, being pre-election, will bring even more economic challenges. The risk of increased public spending for electoral purposes is high, and this could aggravate the fiscal deficit and inflation.
The government will need to adopt more effective measures to control the deficit and recover the investor confidence. That includes cost cutting, greater transparency in economic management and a more responsible fiscal policy.
A record tax collection in 2024, far from being a relief, exposed the weaknesses of the economic management Brazilian. The inability to balance income and expenses, combined with a crisis of confidence in the market, put the country in a delicate situation. The question remains: will the government be willing to make the necessary adjustments to avoid a collapse in 2025?
There needs to be a plebiscite on the new currency, DREX, which could be a scam to steal money from business owners and workers; Google needs to be questioned as a suspicious intruder,
helping people to buy dollars outside the country and sell them at a higher price here;
That's right, it's Google's fault...when incompetence reigns in the shrimp brain of this government, the result is to see **** talking this nonsense!
These numbers don't make sense.
What is the source of the data?
Do you need sources? Hahaha, which country are you in? Look at the mud in this country's accounts! The dollar is reaching 7 reais and you're asking for sources? No way!
It's funny that these idiots don't include in the calculation the increase in interest rates that impacts the increase in public debt. This year, the government will have to pay more than 800 billion in interest on the debt. How about these idiots include this expense in the analysis as well? They won't, what they'll always say is that the government is spending too much on social services. The truth is that interest rates are criminal in Brazil. This calculation is also the fault of the market. But that's not going to show, is it? This article is biased!
If the biggest expense was on social issues, it wouldn't be a problem, but the biggest expense is on the individual side, the super salaries, the perks, the cabinet funds, the corporate cards, the luxuries of the palaces. Why does a deputy or a minister have to earn more than 20 minimum wages? In addition to having several expenses reimbursed.
It would be great if this were clarified.
What we see is very high taxes for us to pay, cuts everywhere in health, education and much more and people getting screwed and **** spending without mercy! COME AND GET SCREWED TOO LOL
The biggest impact on public accounts is called INTEREST.
Country with internal debt of 70% of GDP pays 54 times more interest than Japan with 255% of GDP in internal debt.
Japan/Brazil GDP is 4,13/2,174 trillion dollars.
In other words, Brazil pays too much in interest. We are the country that pays the most interest in the world, and among the G-20 we are among the least indebted.
The high interest rates paid by the country drain 10% of its GDP.
Added to this are the abusive salaries practiced in the judiciary, legislature and local authorities, revealing the cause of the current imbalance.
They pay high interest rates because they have no credit (trust). There is a high risk of lending money to someone who cannot control their budget. Remember the color that stole millions from Brazilians?
Is high interest a crisis of confidence?
Capital outflows through swaps have nothing to do with capital flight as happened in the austere Temer/Bolsonaro governments, such as Sony, Ford, etc.
Swap is not an outflow of dollars, it is a containment measure, and very little has been done!
Central bank had to do more and break speculators…
They forgot to mention that the biggest hole in the public accounts is the interest on the debt. The investments made by the government so far are small compared to the plundering of public resources by parasites who don't produce a bar of soap.