The World Bank has proposed a series of measures for Brazil to recover the balance of public accounts. In a recent report, the institution expressed concern about the country’s high level of indebtedness and the negative effects that could reach the next generations due to economic imbalances.
Recommendations include broad cuts in government spending – including social areas – and increased tax burden, especially the taxation of profits and dividends. The document also suggests the implementation of an administrative reform, a new review of the social security system and the detachment between the growth of revenues and the minimum wage in relation to mandatory expenses. In addition, it has proposals aimed at reducing greenhouse gas emissions.
According to estimates from the World Bank itself, this set of shares could improve fiscal balance in more than 5% of GDP.
