Minister conditions the cost of expenses to the approval of a tax rule

Minister conditions the cost of expenses to the approval of a tax rule

The Minister of Planning and Budget, Simone Tebet, explained, this Monday (17), the numbers of the Bill of Budgetary Guidelines (PLDO) of 2024, sent last Friday (14) to the National Congress. At a press conference, Simone Tebet said that the text respects the spending cap rule, in force since 2017, “because it is the only one existing in the legal system” and that “the LDO respects the current rule and brings budget realism and transparency”.

O PLDO text of 2024 indicates the excess expenditure of R$ 172 billion, in relation to the current ceiling. According to the minister, the extra amount in the budget can only be funded if the new fiscal framework is approved.

“We are calling expenditure conditional on the approval of the fiscal framework. If it is not approved, we will not be able to meet the expenses. If it is, they will already be covered”. She reinforced that the new ceiling rule needs to be approved to guarantee the funding and execution of federal government social programs. “All social programs would be compromised, in what has advanced from last year to here”, she explained.

The minister listed the federal actions that may be affected. “If we do not approve the fiscal framework, we will not have resources for Minha Casa Minha Vida, maintenance of the federal road network, development of basic education, scholarships from Capes [Coordenação de Aperfeiçoamento de Pessoal de Nível Superior]operation and maintenance of federal institutes of higher education, specialized health care, Popular Pharmacy program, SUAS [Sistema Único de Assistência Social]which is the area of ​​social assistance, urban planning, own hospitals and the Mais Médicos program”.

Civil House

According to the minister, the text of the new fiscal rule was forwarded today to the Civil House of the Presidency of the Republic, for subsequent approval by President Luiz Inácio Lula da Silva, and subsequently to the National Congress, for analysis.

Simone Tebet once again called the new fiscal framework a “bronze bullet” and the tax reform, a “silver bullet” for Brazil to grow again. To this end, she defended the understanding with the Federal Legislature. “Congress will have the sensitivity to evaluate the new fiscal framework and will see that this will be the way out so that we can fulfill what we are all committed to: social responsibility, without neglecting fiscal matters.”

She recalled that the president of the Chamber of Deputies himself, Arthur Lira (PP-AL), stated that the vote on the new fiscal framework should be approved by Congress without difficulties.

Primary surplus

According to the LDO 2024 project, the projection is for a neutral primary surplus in 2024, for the Central Government (National Treasury, Social Security and Central Bank). The first target for a positive primary result will be for 2025, with an increase of 0.5% of the Gross Domestic Product (GDP), which is equivalent to R$ 61.6 billion. And in 2026, 1.0% of GDP (R$ 130.8 billion).

Forecasts around the target may fluctuate by 0.25% of GDP, as explained by Federal Budget Secretary Paulo Bijos. “In our understanding, this innovation is possible to be implemented in light of the current rules, regardless of the approval of the new framework. And the great north is the current framework, the spending ceiling approved in 2016.”

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