Brazil Ministry of the Economy Disputes the Financial Evaluation of the President Lula Da Silva Transition Team

Brazil's Economy Ministry acknowledged Sunday that the incoming administration of incoming President Lula da Silva was mistaken when it claimed that the current administration had "bankrupted" the country.

Reuters reported that the Ministry of the Economy released a statement predicting that gross debt will reach 74% of GDP by the end of the year, with a primary surplus (excluding debt payments) of 23.4 billion reais. This surplus would be the first since 2013.

"This will be the first government ending its term with debt ratios lower than in its beginning; the debt was 75.3% of GDP in 2018," the statement said.

Former minister and transition team member Aloizio Mercadante revealed last week that Lula's planning and budget group predicted that Brazil would be "bankrupted" under outgoing President Jair Bolsonaro.

The ministry announced that in 2018, Brazil would pay $1.23 billion to international financial institutions, a 20% decrease from the $1.56 billion owed in 2016.

The government has spent a great deal of money on aiding the most vulnerable people since the beginning of the COVID-19 outbreak. Due to this, government workers will see a pay boost in 2021.

Senator Marcelo Castro, who oversees drafting the budget bill, claims there is not enough money to pay for government initiatives in the upcoming year, despite assurances from the ministry to the contrary.

The transition team for Lula is discussing the possibility of introducing legislation that would allow him to spend an additional 145 billion reais over the legal limit.

Incoming President Lula da Silva Announces His First Cabinet Members

Leftist president-elect Luiz Inacio Lula da Silva announced his first cabinet members Friday.

Former Sao Paulo mayor Fernando Haddad now oversees Brazil's financial affairs as minister of finance. He served as Lula's education minister in the previous administration.

When Lula was disqualified from running for president in 2018 due to a corruption conviction later reversed, he was the Workers' Party (PT) nominee per DW.

The former mayor now works as a lawyer and holds a master's degree in economics and philosophy.

MCM consultant Antonio Madeira said Haddad represents the PT's "heterodox economic policy."

Incoming President Lula da Silva also named Jose Mucio the new defense minister. Mucio is a civilian, which is a change from Jair Bolsonaro's appointments of army generals to the role.

Five white males were appointed to Lula's government in his first term. In the future, he said he would be setting more women than men and some Afro-Brazilians, too.

Jair Bolsonaro Breaks Silence Following Presidential Election Defeat

Jair Bolsonaro has been silent since he was defeated in the election on October 30, but he finally made a public statement on Friday.

He spoke to supporters who wanted a military coup to stop the incoming leftist President Lula da Silva from taking office.

Bolsonaro said that he had been quiet for almost 40 days and that it hurt his soul, said NDTV.

"Who decides where I go are you. Who decides which way the armed forces go are you," Bolsonaro told his supporters outside the president's home.

Bolsonaro's vague comments showed that he disagreed with their call for military intervention, but he did say that the military would respect Brazil's Constitution.

His refusal to accept Lula's October election victory has encouraged ongoing demonstrations outside military installations.

On Monday, Brazil's national electoral authority will officially announce that Lula narrowly defeated Jair Bolsonaro.

Bolsonaro reminded his supporters that the military is Brazil's final line of defense against socialism.

More encouragingly, he assured them that "nothing is lost" and that they would ultimately be successful in their mission.

"The Armed Forces are united. They owe loyalty to our people and respect to the constitution, and they are responsible for our freedom", he said.

This article is owned by Latin Post.

Written by: Bert Hoover

WATCH: What Lula's Victory Means for Brazil's Economy - From Bloomberg Markets and Finance