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August 10, 2022
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Budget Guidelines Law provides for a minimum of BRL 1,294 in 2023

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President Jair Bolsonaro sanctioned, with vetoes, the Budget Guidelines Law (LDO) of 2023. The text provides for a minimum wage of R$1,294 for next year and a primary deficit of R$65.91 billion for public accounts of the Central Government (National Treasury, Social Security and Central Bank).Budget Guidelines Law provides for a minimum of BRL 1,294 in 2023

The primary deficit represents the result of government accounts disregarding the payment of interest on the public debt.

In a note, the General Secretariat of the Presidency explained that the estimate is for a real growth of 2.5% for Gross Domestic Product (GDP – the sum of all goods and services produced) in 2023.

The target for the Broad National Consumer Price Index (IPCA), which measures inflation, is 3.3%, the Selic rate at 10% and an average exchange rate of R$ 5.3 next year.

The LDO determines the goals and priorities for public spending and provides the parameters for preparing the draft Budget Law of 2023 (LOA 2023). O text, published today (10) in Official Diary of the Unionhe was passed in Congress in July.

According to the Presidency, the forecast of directing resources from the Ministry of Health’s budget to the implementation of photovoltaic systems (conversion of solar energy into electrical energy) in private entities was vetoed. “Apparently, there would be a deviation of purpose due to the lack of relationship with the expansion or maintenance of public health actions and services”, he explained.

“The need to return unused resources transferred to federated entities through special transfers to the Union was also vetoed, given that the resources belong to the federated entity in the act of effective financial transfer”, says the note.

Another veto mentioned by the Presidency is the passage that allows Social Organizations to receive resources through a collaboration or promotion term, agreement or other similar instrument celebrated with a philanthropic or non-profit entity.

“In accordance with the provisions of Law No. 9,637of May 15, 1998, the management contract should be used as an instrument to form a partnership between the Public Power and the social organization”.

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