info:eu-repo/semantics/article
Without social security reform, the constitutional spending ceiling could be disastrous
Autor
Araujo, Aloisio
Monteiro, Solange
Institución
Resumen
When it comes to containing public debt and placing the country on a sustainable growth path, Professor Aloisio Araujo, the only Brazilian economist elected to the U.S. National Academy of Science, has a clear idea of the role the government should play in the economy. He agrees with President Michel Temer’s strategy of making privatization a priority and setting a ceiling for public expenditure— as long as it is accompanied by social security reform - but argues for retaining constitutional mandates on spending for health and education. He believes that making education spending more efficient should not be done through budget cuts: “We have to rebalance government finances and ensure funding for health, education, science and technology, through two fronts: social security reform and reducing the role of government as operator of state-owned companies, which are vulnerable to political manipulation.”