Fiscal responsibility is essential to preserve strategic resources and boost productivity and competitiveness, urging Brazil to confront the fiscal balance challenge responsibly.

However, the discussion cannot be limited to how much the State spends; it must also address where and how resources are applied, especially given the scale of Brazil's industry and the sectors that sustain a large share of economic activity.

In 2025, the mining sector recorded revenue of R$ 298,8 billion and directly employed about 229 thousand workers. The Brazilian steel industry posted revenue of US$ 29,4 billion in the same year, while the chemical industry reached roughly US$ 167,8 billion – equivalent to around R$ 900 billion – and its value chain accounted for approximately 2 million direct and indirect jobs.

Beyond its size, the chemical sector is embedded in virtually all major production chains, including agriculture, health, construction, automotive, mining, sanitation, food, energy, technology, hygiene, among others. Consequently, a loss of competitiveness in chemicals reverberates throughout the entire economy, not only within chemical factories.

Fiscal balance therefore must not translate into a reduced capacity to build the foundations for growth. Cutting investments that could raise productivity may improve short‑term indicators but jeopardizes long‑term competitiveness.

This premise underpins the "Agenda da Indústria Química 2027–2035" drafted by Abiquim, which stresses that Brazil’s competitiveness will depend on choices that combine fiscal responsibility, efficient public spending, and priority for structural investments.

Infrastructure, logistics, energy supply and security are not peripheral issues for the chemical industry; they are direct cost components. A competitive chemical sector needs adequate raw materials, reliable energy, efficient transport of inputs and outputs, competitive ports, and predictable conditions for multi‑billion‑real, multi‑decade investments.

When these conditions are missing, costs rise inside factories. Expensive logistics erodes competitiveness, insufficient infrastructure raises risks, and energy uncertainty hampers new projects. Each inefficiency reduces the ability of Brazilian products to compete domestically and abroad.

To address these gaps, the agenda proposes the implementation of multimodal corridors, greater logistical predictability, and tighter integration between energy planning, infrastructure development, and industrial policy. The goal is not to advocate indiscriminate public spending, but to recognize that better spending means prioritizing elements that boost the country’s productive capacity.

Brazil must differentiate ordinary expense from strategic investment. Investments that alleviate logistical bottlenecks, expand competitive energy supply, strengthen infrastructure, and improve the production environment generate a multiplier effect across the economy: higher productivity, stimulated private investment, reinforced supply chains, and, over time, increased revenue and tax collection.

Given its size and transversal role, the chemical industry exemplifies this multiplier effect. Enhancing its competitiveness strengthens numerous other Brazilian production chains and helps recover industrial capacity.

The challenge for the coming years is not to choose between fiscal responsibility and development. Sound fiscal policy builds trust and stability, while sustainable growth demands investment, productivity, and a long‑term strategy for infrastructure and industry. The true balance lies in a more efficient State that controls expenses, sets priorities, and safeguards investments that raise Brazil’s production capacity. Better spending creates conditions for higher output, more investment, and sustainable growth.

André Passos Cordeiro, 56, serves as president‑executive of Abiquim and has been active in the chemical sector for more than 17 years, holding various leadership positions.

Com informacoes de Poder360.