(Nov 9): President Luiz Inácio Lula da Silva pledged to preserve Brazil’s public finances without abandoning social programmes in his first televised address since winning a fourth term, as he sought to reassure investors.
“The trajectory of public debt and high interest rates concern me, which is why I reaffirm my commitment to fiscal responsibility, in order to make sustainable social policies possible and enable the much-needed expansion of investment,” Lula said in his Sunday remarks. “All of this will be done while preserving the fiscal rules.”
He cited lowering interest rates as one of the main challenges ahead, saying his government will create the conditions to reduce borrowing costs and help raise investment in the country to more than 20% of GDP.
The president, however, offered no details on spending cuts, revenue measures or other steps his administration could take to shore up the public accounts, a key concern for investors as he prepares for another four years in office.
The message marks an early attempt by the leftist leader to balance competing pressures: preserving the social agenda that has defined his political career while convincing investors his government can keep public finances under control and create conditions for interest rates to fall.
Brazilian assets have come under heavy pressure since Lula’s surprise runoff victory, amid market concerns that his fiscal approach will exacerbate budgetary strains and further complicate the central bank’s efforts to tamp down inflation.
In his public address, Lula highlighted some of his government’s key achievements, including the passage of a shorter workweek. He also pledged to expand a series of government programs, including measures aimed at supporting small businesses.Lula, who was reelected on Oct. 25, used the roughly 8-minute address to thank Brazilians for giving him another term, with particular mention of young people, women and the elderly. He also sought to strike a conciliatory tone after a deeply divisive campaign, pledging to govern for all Brazilians and work to normalize political relations in the country.
“I am immensely grateful for the more than 64 million votes I received, and I will govern for all Brazilian women and men, as I have always done. We must build bridges instead of walls,” he said.
The 81-year-old leader, now entering his fourth term as Brazil’s president, faces a slowing economy and a growing number of families grappling with debt. In his speech, Lula highlighted a series of measures aimed at easing the financial burden on Brazilian households, including an income-tax exemption for those earning up to 5,000 reais (US$907) a month and a ban on online gambling.
“Without spending money on bets, families have increased consumption, retailers are selling more, industry is producing more and the wheels of the economy are turning again,” he said. “Betting destroyed lives and must remain in the past, like a nightmare from which Brazil has finally awakened.”
Uploaded by Liza Shireen Koshy
