Piauí Governor Rafael Fonteles has defended fiscal balance while announcing that state Finance Secretary Emílio Joaquim de Oliveira Júnior will stay on for his next term. Fonteles, who has been mentioned as a possible candidate to lead Brazil’s Finance Ministry in President Luiz Inácio Lula da Silva’s next government, made the announcement on Monday, November 2.
“Long live fiscal balance,” Fonteles wrote on social media, praising Piauí’s economic results and thanking Oliveira Júnior for accepting a renewed role. He said the secretary’s work was important to maintaining the state’s fiscal position and, in turn, supporting public policies that improve residents’ lives.
The potential choice of Fonteles for the federal post has become a point of dispute among factions within the Workers’ Party (PT). Some party members have highlighted the preference for Fonteles among parts of the financial sector, arguing that his appointment could lead to deep spending cuts.
In an interview with Folha, Fonteles said Lula would pursue an ambitious agenda to improve people’s lives while maintaining fiscal responsibility. He said the president would seek to reconcile those priorities without giving up annual social gains. Fonteles also said commitments made toward the end of the campaign were compatible with the fiscal framework, and that Lula would announce economic measures for the next term in due course.
The scale of fiscal adjustments after Lula’s reelection has prompted disagreement within the government. While the team agrees on pursuing the central fiscal target, members differ over how far other measures should go to secure the president’s approval.
In Piauí, Fonteles introduced a fiscal rule designed to limit the growth of state spending over 10 years. The measure was inspired by the federal government’s model and followed an increase in the state’s primary deficit in recent years.
Sources: Folha Mercado.