Harsh future reality for Brazil
According to economic analysts, the country's budget for 2024 will show a deficit. Revenues lower than Expenses.
Although the official narrative of the Executive and Legislative Powers is focused on fiscal balance, the harsh reality points to the opposite.
The "only" solution that is well known and experienced by our leaders is to increase taxes to compensate for the fiscal imbalance.
An emblematic example, which I always remember, is the value of the ICMS tax (VAT type). When I started my professional career, in São Paulo, as a newly graduated electrical engineer, it was 11%. It is currently 18%.
We are supposed to have increases in taxes on the rich. At first glance it seems like a good and even fair measure. But the reality already experienced by the countries that did this, showed that an important part of these rich people change countries and their investments, which would be so necessary and welcome, went to look for better "stops".
The key to success is to REDUCE EXPENSES. Until this path is followed, we will be left out of global competitiveness. And the energy sector does not escape this harsh reality!
Rafael Herzberg
Expert Member
Top Contributor