Minister of Planning and Budget mentions IFI projection and says that fiscal framework aims to “contain expenses”
The Minister of Planning and Budget, Simone Tebet (MDB), presented this Monday (April 17, 2023) details of the 2024 LDO (Budget Guidelines Law) project. general government) in the coming years.
Tebet mentioned an IFI (Senate Independent Tax Institution) estimate to support the approval of the new tax rule. “[A dívida] could reach 95% if the new framework is not approved”he declared in an interview with journalists.
“This is just one of the projections that have been made, but I highly value the Independent Fiscal Institution of the Senate”added the minister.
Today, the gross debt is at 73%. The projections presented by the Ministry of Planning show an increasing trajectory of the public debt from 2023 to 2026:
- 2023: 76%;
- 2024: 77.7%;
- 2025: 78.5%;
- 2026: 79.3%.
The LDO sets goals and priorities for the following year’s Budget. The government’s proposal for 2024 conditions BRL 172 billion in expenses to the approval of the new fiscal rule.
Expenditures above the current spending ceiling amount to BRL 188 billion in 2025 and BRL 188.5 billion in 2026.
According to the government, the non-approval of the new mechanism would have the potential to affect the maintenance and operation of bodies, as well as public policies, if the amounts were levied on discretionary expenses. Minha Casa, Minha Vida would be one of the damaged programs.
Tebet made the presentation alongside the executive secretary of the Ministry of Planning, Gustavo Guimarães, and the Federal Budget secretary, Paulo Bijos. The special secretary of the Federal Revenue, Robinson Barreirinhas, also participated in the interview.
CONGRESS
The LDO project had been sent to Congress on Friday (April 14). The text proposes a minimum wage of R$ 1,389 for 2024, with no real gain.
The proposal for a new readjustment next year only considers the correction of the value foreseen for December 2023 by the INPC (National Consumer Price Index), of 5.16%. Here’s the full of the document (14 MB).
For 2025 and 2026, the projected amounts are R$1,435 and R$1,481, respectively.
The numbers presented consider the spending ceiling, a mechanism that limits the growth of expenses to the inflation of the previous year.
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