An agreement between the government and deputies resulted in the repeal of the law that created the new Mandatory Insurance for the Protection of Traffic Accident Victims (SPVAT), formerly DPVAT. The government also accepted the blocking of only non-binding parliamentary amendments, rather than all amendments.
The two points were approved in highlights of the first complementary bill in the spending cut package. On Tuesday night (17), deputies had approved the basic text by a large margin, 318 votes in favor (257 were needed) and 149 against. However, voting on the highlights had been scheduled for this Wednesday (18).
The government closed the agreement to approve the highlights and guarantee the continuity of the public spending review package. The project goes to the Senate.
Extinct in 2020, the DPVAT charge had been recreated under the name SPVAT, which would come into force in January. The recreation of insurance faced resistance from governors.
Amendments
In relation to parliamentary amendments, the government agreed to remove from the complementary bill the authorization for contingency and blocking of all parliamentary amendments. According to the text that will go to the Senate, the government will only be able to freeze commission amendments and amendments from non-imposing state benches, up to 15% of the total. Mandatory amendments cannot be blocked.
The measure partially dehydrates the spending cut. If the mandatory amendments could be frozen, the government could block or contingency R$7.6 billion in amendments next year. Now, the Executive will only be able to cut R$1.7 billion, R$5.9 billion less. The survey disregards non-imposing state bench amendments, whose value for 2025 depends on the approval of next year’s Budget.
Triggers
The main point maintained in the complementary bill was the creation of triggers that prohibit the creation, expansion or extension of tax incentives if there was a primary deficit (negative result of government accounts without interest on public debt) in the previous year. The project also limits the annual growth in personnel expenses and charges of each of the Powers to 0.6% above inflation in the same situation, primary deficit in the previous year.
In addition to the Three Powers (Executive, Legislative and Judiciary), the project approved by the deputies limits the growth of personnel expenses of the Public Ministry and the Public Defender’s Office to 0.6% above inflation in the event of a negative result in public accounts.
The restrictions are in force until the government returns to recording an annual primary surplus. As of the 2027 budget law project, the two limitations will be valid if total discretionary (non-mandatory) spending has a nominal reduction in relation to the previous year.
Funds
From 2025 to 2030, the government will be able to use the surplus of five national funds to reduce public debt. The positive balances totaled, in 2023, R$18 billion.
The funds are as follows:
• Fund for the Defense of Diffuse Rights (FDD), formed by fines paid to the government: surplus of R$2 billion
• National Traffic Safety and Education Fund (Funset): surplus of R$ 1.6 billion
• Army Fund: surplus of R$2.5 billion
• Aeronautical Fund: surplus of R$8.7 billion
• Naval Fund: surplus of R$3 billion
The project’s rapporteur, deputy Átila Lira (PP-PI), removed the following funds from the government’s original proposal: National Anti-Drug Fund (Funad), Merchant Marine Fund (FMM) and National Civil Aviation Fund (Fnac). According to the parliamentarian, these resources are used for important investments.
