Text approved in the Chamber indicates that the Constitutional Fund of the DF is limited by the ceiling of the rule, which reduces revenue
The Governor of the Federal District, Ibaneis Rocha (MDB), said this Tuesday (June 6, 2023) that, if the fiscal framework is approved in the Senate the way it came out of the House, the Federation unit will need to cut expenses. Casa Baixa kept the FCDF (Constitutional Fund of the Federal District) at the ceiling of the new fiscal rule in voting on May 24.
“[Caso o texto se mantenha como está] we’re going to have to use the basic instruments, which are cutting expenses, reducing the salaries of public servants and reducing public tenders”, Ibaneis told reporters. “It would be tragic for the Federal District as a whole.”
The governor had a meeting with the president of the Senate, Rodrigo Pacheco (PSD-MG), this Tuesday (June 6) to talk about the topic. Also participating were former governors of the Federal District and members of the capital’s bench in Congress.
The rapporteur for the fiscal framework in the Senate, Omar Aziz (PSD-AM), did not participate because he is not in Brasília this week. Ibaneis should have a meeting with the senator next week.
INCLUSION OF FCDF IN THE CEILING
The inclusion of the FCDF in the fiscal framework ceiling alters the readjustment calculation. According to the governor, the change, if confirmed by the Senate, would mean that the DF will no longer receive R$ 87 billion over the next 10 years. “[Essa perda] would make the city completely unviable”.
The DF government tried to withdraw the section of the project while still in the Chamber. However, deputies maintained the stretch.
“Now we are going to move on to the political articulation with the Federal Senate, 1st with the objective of withdrawing Article 14 and in case it is not possible that we obtain the veto of the President of the Republic”, said Ibaneis.
the senator Izalci Lucas (PSDB-DF) attended a meeting of Senate leaders with the president Luiz Inacio Lula da Silva (PT) on Monday (June 5). According to him, the petista said that, if it were up to him, there is support for the exclusion of the section about the FCDF.
DF fund
The FCDF represents around 40% of the DF’s budget allocation in 2023 – R$ 23 billion of the total budget of R$ 57.4 billion. It is fed with transfers from the federal government – that is, funded by all the States of the Federation.
It was established by the Federal Constitution of 1988, with the objective of funding the organization and maintenance of the Civil, Military, Penal and Fire Department and financial assistance to the DF for the execution of public services.
According to the current correction, if revenue increases, transfers to FCDF also increase. Resources are supervised by the TCU (Federal Court of Accounts). Compared to 2022, for the 2023 financial year, there was an increase of 41.1% in values. If the new fiscal rule is approved as it is, transfers will be corrected for inflation.
Brasilia: richest city in Brazil
The average monthly nominal income per capita of residents of the Federal District added R$2,913 in 2022. This value is 79% higher than the national monthly average of R$1,625, and 258% higher than the poorest state, Maranhão (R$814).
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The State with the 2nd highest average monthly income is São Paulo, of R$ 2,148, that is, 35.6% less than in Brasília. In practice, the average monthly income in the federal capital is higher than that of the most productive state in the country.
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