There is already an agreement for the project rapporteur to maintain an amendment similar to the one rejected in the fiscal framework in the Budget Guidelines Law
The defeat of the government of Luiz Inacio Lula da Silva (PT) in the fiscal framework must be corrected with the LDO (Budget Guidelines Law) of 2024. Power360the rapporteur of the text, deputy Danilo Forte (União Brasil-CE), must keep the stretch in the project that would open space for BRL 32 billion to BRL 40 billion in the Budget.
The withdrawal of the stretch from the fiscal framework came with an agreement for the amendment to be in the LDO. The government has already sent the proposal to add the device to the text in early August.
“The 2024 Budget Bill and the respective law may contain expenses conditioned to the opening of additional credit due to the difference in the calculation base of the index applicable to the correction of the limit of primary expenses of the federal Executive Branch”, says part of the government’s proposal to change the LDO. Here’s the full from the text sent on August 7 (267 KB).
The measure that had given space to the government in the fiscal framework was proposed by senator Randolph Rodrigues (non-AP party), leader of the Government in Congress. The passage anticipated the possibility of additional credit in the LOA (Annual Budget Law), indicating that real inflation was higher than the estimate for the correction of the spending limit (which considers inflation from July to June).
The amendment was the main change made in the Senate. Members of the PT administration tried to dialogue with the deputies until moments before the text was discussed in the Chamber. They weren’t successful.
The President of the Chamber, Arthur Lira (PP-AL), said on Monday (21.Aug) that the changes approved by the senators did not respect what had been agreed. “The Chamber approved a text with 10 hands, in agreement with the government, the economic and political part. Suddenly, the government felt obliged to make changes in the Senate, and the Chamber did not understand”declared at an event at the PowerIdeasdivision of events Power360.
Planalto preferred that this authorization was already in the fiscal framework, which is a constitutional amendment and would give more comfort to the economic team. Lira said it does not make sense that something that can be done by law is included in the fiscal framework –which, when approved, will be a complementary law.
The year-to-year negotiation implies a recurrent political effort for the Lula government. For the 2024 LDO, the government managed to include this annual negotiation as part of the agreement to vote on the fiscal milestone, as found in the Power360.
The LDO is currently being analyzed by the CMO (Mixed Budget Committee) of the National Congress.
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