(Reuters) – Brazilian President Luiz Inacio Lula da Silva said on Tuesday that the proposal for new fiscal rules will only be announced after his visit to China, frustrating expectations that the measures would be unveiled this week.
In an interview to local news website Brasil 247, Lula said that the fiscal framework is already “mature”, but it makes no sense to announce it and then travel to China.
Lula said it would be necessary to “debate and talk” about the framework in-country.
“What I have been calling attention to is that we have to do things very carefully because we cannot lack resources for education and health,” said Lula, emphasizing that he will talk during the trip about the issue with his Finance Minister Fernando Haddad.
The framework is seen as crucial to easing fiscal concerns after Lula obtained congressional approval for a multi-billion-real package that bypasses the constitutional spending cap to increase social spending and fulfill campaign promises.
Initially, the intention was to present the proposal before the trip. Lula will be in China from March 26 to 30.
(Reporting by Pedro Fonseca; Writing by Peter Frontini; Editing by Steven Grattan)
