Government blocks another BRL 2.635 billion from the Budget

Government blocks another BRL 2.635 billion from the Budget

The possibility of an overflow in the spending ceiling made the government contingency (block) another R$ 2.635 billion of non-mandatory spending from the General Budget of the Union for 2022, the Ministry of Economy announced today (22).

The blocking of funds is included in the Bimonthly Report on the Evaluation of Revenues and Expenses, sent today to the National Congress. Published every two months, the document guides the execution of the Budget. The distribution of cuts by the organs of the Federal Executive Branch will be disclosed in a presidential decree to be published by the end of the month.

According to the report, the need for total blocking of the 2022 Budget fell from BRL 12.737 billion in the third quarter to BRL 10.5 billion in the third quarter. As the government still had BRL 7.865 billion blocked, the value of the new blockade remained at BRL 2.635 billion defined in the report.Government blocks another BRL 2.635 billion from the Budget

Expenses

The projection for primary expenditures in 2022 fell by R$2.954 billion, and should end the year at R$1.831 trillion. The estimate for mandatory spending fell to R$ 1.678 trillion, R$ 1.944 billion lower than the projected in July. The forecast of discretionary (non-mandatory) expenditures by the Executive Branch was reduced by R$ 1.01 billion, to R$ 153.236 billion. This resulted in a total variation of R$ 2.954 billion.

The distribution of the new cuts by the ministries will only be released on the 30th.

total block

At the end of March, the government had contingent R$ 1.722 billion in rapporteur amendments. In May, the economic team initially released a blockage of BRL 8.239 billion, but the amount was later reduced to BRL 6.965 billion

In July, the government made new block of BRL 6.739 billion. Since then, there would be a need for a new blockade of BRL 10.5 billion, but, as there are BRL 7.865 billion in amendments by the rapporteur and in amendments by the bench blocked, it was only necessary to block BRL 2.635 billion.

Every two months, the Ministry of Economy publishes the Income and Expenditure Assessment Report, a document that guides the execution of the Budget. Based on forecasts of economic growth, inflation and the behavior of revenues and expenditures, the economic team determines the necessary blockade to meet the primary deficit targets (negative result of government accounts without public debt interest) and the spending ceiling.

On the 15th, the Economic Policy Secretariat of the Ministry of Economy had released the estimates used in the preparation of the report. The growth forecast for the Gross Domestic Product (GDP, sum of the wealth produced by the country) increased from 2% to 2.7%. The official inflation estimate dropped from 7.2% to 6.3%.

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