Michel Temer on Spending Ceiling
TL;DR
Michel Temer strongly advocated for the Spending Ceiling as a necessary fiscal tool to control public debt and restore confidence.
Key Points
Michel Temer first outlined measures to control the budget deficit, including the spending cap, in May 2016.
The Spending Ceiling, which he strongly backed, was passed by the Senate in December 2016, freezing spending growth for two decades.
He expressed confidence in the spending cap's ability to control the budget, stating a goal to leave the deficit below 130 billion reais upon leaving office in 2018.
Summary
Michel Temer's core position was one of strong support for the constitutional spending ceiling, which he viewed as essential for controlling the growth of public spending and restoring Brazil's fiscal balance after a period of high deficits. As president, he championed the measure, which limited federal spending growth to the rate of inflation of the previous year for two decades, arguing it was a crucial step to reverse the country's trajectory toward unsustainable debt. The administration emphasized that this cap was designed to restore market confidence in the economy, which was suffering from a severe recession and large primary deficits.
This fiscal anchor was central to his government's agenda, and he remained confident in its ability to discipline the budget despite widespread protests against the austerity measures it entailed. His government highlighted that the mechanism was a key part of the plan to put the country's finances back in order and ensure long-term stability, contrasting it with previous fiscal policies. The approval of the measure by the Senate in late 2016 was seen as a significant victory for Temer's economic agenda, designed to signal fiscal responsibility to investors and international bodies.
Key Quotes
"We need a lot of courage at this moment in Brazil to do things that are apparently unpopular but which will bring popularity later"
"I have no regrets. I did what I had to do. I did what I thought was best for the country"
Frequently Asked Questions
Michel Temer was a strong proponent of the constitutional Spending Ceiling mechanism. He viewed the fiscal rule as indispensable for controlling public expenditure growth and re-establishing fiscal health in Brazil. His administration made its approval a central policy priority.
There is no evidence suggesting Michel Temer changed his stance on the Spending Ceiling after its implementation. He consistently backed the measure as a necessary, long-term fiscal anchor throughout his time in office. His public statements remained supportive of the control it placed on public spending.
Michel Temer stated that the Spending Ceiling would help control the public budget and was key to putting the country’s finances back in order. He believed the fiscal discipline introduced by the ceiling was vital for restoring investor confidence. The measure was presented as a commitment to fiscal responsibility.
Sources8
Brazil Senators Pass Spending Ceiling Temer Backed
Brazil president's plan to restore finances takes step forward
Spending Ceiling Helps Control Public Budget
Brazil Approves 20-Year Spending Freeze Amid Protests
Brazil's Temer confident spending cap will help curb deficit
Brazil's Temer outlines first measures to tame budget deficit
Brazil Senate approves controversial austerity measures
Brazil's Temer says leaving budget deficit under 130 billion reais
* This is not an exhaustive list of sources.