The rapporteur of the bill that makes up the spending cut package, deputy Isnaldo Bulhões Jr. (MDB-AL), excluded the Constitutional Fund of the Federal District (FCDF) from the fiscal adjustment. As it hosts the capital of the Republic, the Federal District receives resources from the Union for health, education and public safety.
The Project of Law 4,614/2024 sent by the Executive provided for a change in the calculation formula to limit the increase in the fund’s resources to the variation in inflation measured by the Broad Consumer Price Index (IPCA). Currently, the amount transferred is corrected by the variation in the Union’s net current revenue. The measure received criticism from the Federal District government and the DF bench in Parliament.
Rapporteur Isnaldo Bulhões argued that the change imposes “severe fiscal restrictions on the Federal District”.
“Considering that it is the competence of the Union, according to art. 21, item fund with monetary correction alone does not correctly reflect population and income growth”, stated the parliamentarian.
The change was celebrated by the DF bench and united political opponents in maintaining the correction of the currently foreseen fund, as highlighted by deputy Erika Kokay (PT-DF). “Here we formed a unit of all parliamentarians from the Chamber and Senate who represent the Federal District. In a very fierce way, we know that this fund goes to security, health and education. Therefore, they are fundamental public policies”, he explained.
The change was also praised by deputy Alberto Fraga (PL-DF). “Yes, there was joint work, between me and deputy Erika Kokay, who knew, Erika? But this is the Federal District and we have to save the Federal District. Therefore, I thank the work that deputy Erika Kokay did with her party. All of us, the eight federal deputies and the three senators, worked together”, said Fraga.
The bill foresees a series of other changes to contain the growth of Union expenses. Among them, it limits the growth of the minimum wage to 2.5% above the IPCA. Currently, the minimum wage increases according to the Gross Domestic Product (GDP) of the 2 years prior to the adjustment.
