Reducing deficit without compromising investment is a commitment, says Lula

President Luiz Inácio Lula da Silva (PT) said this Tuesday (July 9, 2024) that reducing the fiscal deficit without compromising the country’s ability to invest is a commitment of his administration. In a speech during a business forum in Bolivia, he said he was optimistic about the economy and that without political and legal stability there is no development.

“In the wake of the 1988 citizen constitution, we have overcome the specter of inflation and foreign debt. Reducing the fiscal deficit without compromising the capacity for public investment is a commitment of my administration”these.

Watch (50s):

The speech is in line with the change in tone that the PT member had with the economy after his questions about the need to cut spending boosted the rise of the dollar against the real.

At the launch event of the Safra Plan for family farming last week, Lula cited concerns about food inflation, with an economic policy “without any surprises” and stated that his government has “commitment” with the “fiscal responsibility”.

To Bolivian businesspeople, the president declared that without political and legal stability there will be no economic growth while defending democracy. Bolivia suffered an attempted coup d’état at the end of June.

“The productive sector is fully aware of the importance of the rule of law for the functioning of the economy. The resilience of national institutions in the face of July 26 in Bolivia and January 8 in Brazil demonstrates that there is no room for regression. Without political and legal stability, there is no social and economic development.”he stated.

Watch Lula’s full speech (34min55s):

Lula arrived in Santa Cruz de la Sierra, the country’s main economic hub, on Monday night (July 8). He was received by Arce on Tuesday (July 9) with the honors of a head of state.

The trip takes place after the Mercosur summit, in which the Andean country was officially recognized as a full member of the bloc. The Bolivian Senate approved the application for membership on July 3, in a victory for the Arce government. Lula returns to Brasília on the evening of Tuesday (July 9).