Secretary states that change will be formalized in April; Currently, a report is sent annually to Congress
O Ministry of Budget and Planning has plans to issue a rule so that the PPA (Multi-Year Plan) monitoring report is sent to Congress every 6 months. Currently, the document is prepared once a year.
“We will make decrees and ordinances between now and April to be at least biannual”said the ministry's Planning Secretary, Leany Lemosin an interview with Power360 on Thursday (1st.Feb.2023).
The initial idea was that the results would be released every 4 months. The secretariat stated that there were problems in preparing the document in this way.
The minister Simone Tebet (Planning and Budget) will need to sign the measures that introduce the change. The objective of the initiative is to increase supervision of the actions designed in the PPA.
The Multi-Year Plan establishes goals and priorities for the medium-term Budget over a 4-year period. In practice, it serves as a guide on what the government wants to do with the Union's money. There is no punishment for public agents if targets are not met.
Leany states that the increased frequency of publication of the report aims to intensify the monitoring of the actions established by the plan. Better effectiveness of the actions proposed by the plan is expected.
“The PPA is a budget cycle law that is poorly regulated […] and it's good that it's a little like that, but as it doesn't have a minimum structure it ends up changing a lot from one government to another”he said.
Some metrics, as they are not recorded on a constant basis, will not necessarily be presented with the semi-annual report.
According to her, a clearer Multi-Year Plan helps with the transfer of money from public coffers.
The secretary admits that there is concern about how her planning will be affected if the government is unable to maintain the goal of zeroing the deficit in relation to GDP (Gross Domestic Product) in 2024. “There is a medium or high probability that there will be an impact on some type of delivery, it is very high, on others it is low, but it can affect it”.
Asked about the feasibility of the goal of leaving the accounts in the black, Leany replied that the government of Luiz Inácio Lula da Silva (PT) does “all the effort” in that direction.
For her, there are other ways to improve public management without necessarily spending Union money. She gave examples of education and company growth, which can be optimized with monitoring activities and reducing bureaucracy.
The PPA was prepared based on metrics for economic indicators. For example, growth of 2.3% is expected in 2024. The Ministry of Finance projects a value in this range. International organizations say the rate will be less than 2%.
Read below what projections the PPA considers for the Brazilian economy:
The resources allocated to the PPA total R$3.15 trillion in 2024. Of these, R$2.07 trillion come from the Union Budget – equivalent to 37.8% of the entire budget.
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