President Luiz Inácio Lula da Silva sanctioned this Tuesday (31) the 2025 Budget Guidelines Law (LDO). The text establishes the Union’s priorities and fiscal target for the following year, in addition to guiding the preparation of the Budget Law Annual (LOA), which is being processed in Congress.
The final text of the LDO, approved by parliamentarians two weeks agoset the primary result target for 2025 at zero, with a tolerance margin of 0.25 percentage points of Gross Domestic Product (GDP) for more or less. In absolute values, the LDO predicts that the primary result could vary between a deficit of R$30.97 billion and a primary surplus of R$30.97 billion in 2025.
Furthermore, the primary deficit target for the Global Expenditure Program, which refers to non-dependent federal state-owned companies, was set at R$6.21 billion. Excluded from this limit are those of the Petrobras Group and the ENBPar Group, in addition to expenses related to the New Growth Acceleration Program (PAC), up to the amount of R$5 billion.
The LDO also indicated the adjustment of the minimum wage to R$1,502 in 2025. This Monday (30), however, the government set a value above that indicated. Decree signed by President Lula raised the minimum wage to R$1,518 starting this Wednesday (1st).
A provision was also included in the LDO to protect some contingency expenses related to the Border System; the National Forestry Development Fund; the Superintendency of the Manaus Free Trade Zone (Suframa); support for indigenous populations; the National Fund for Children and Adolescents; the National Fund for the Elderly; between others. In practice, the federal government is prevented from making cuts in these expenses to meet the fiscal target.
In a statement, the federal government stated that the commitment to fiscal responsibility and economic stability are essential for sustainable growth and the guarantee of priority public policies.
“The new legislation aims to modernize budget management, by aiming for greater predictability and alignment between fiscal goals and public budget needs”, says the text.
The federal government also highlighted that the LDO innovates by allowing adjustments to be made to the LOA annexes within 30 days in the event of vetoes of appropriations. The note also mentions the relaxation of primary expense control, as changes to payment schedules may be made after the income and expense report for the 5th two months.
