The federal spending ceiling ended 2021 with a gap of R$ 27.53 billion, announced today (28) the National Treasury Secretariat. Of the BRL 1.486 trillion limit, BRL 1.458 trillion was executed, equivalent to 98.1% of the total.
In the division by Powers, the Executive spent 98.2% of the limit; the Legislative, 91.6%; the Judiciary, 97.2%; and the Public Defender’s Office, 90.4%. Only the Federal Public Ministry spent more than the limit: 100.5%. The agency, however, reported that it had authorization from the Federal Court of Auditors (TCU) to spend beyond the ceiling and claims that it legally did not breach the limit. It was up to the Treasury to spend R$ 61.7 million less to compensate for the Public Ministry’s share.
According to the National Treasury, the classification of the other Powers to the ceiling was achieved through adjustments in personnel expenses promoted by the agencies themselves. Also according to the Treasury, the other Powers will now have more space for investments, after holding back spending on employees.
Until 2019, the Executive Branch compensated for any overruns of the spending ceiling by other branches. In this way, the National Treasury saved more to allow the Legislative, Judiciary, Public Ministry and Public Defender’s Office to comply with staff readjustment schedules established before the constitutional amendment that instituted the ceiling. This mechanism was only maintained in relation to the expenses of the Federal Public Ministry, through a ruling with the TCU.
Agencies that were close to bursting the ceiling in 2020 continued to tighten their belts in 2021. The Labor Court, which ended the year before last executing 99.5% of the limit, spent 97.7% in 2021. With 100% of the limit spent in 2020, the National Justice Council executed 98.8% last year.
perspectives
For 2022, the spending ceiling is set at R$ 1.675 trillion. Originally, the limit would correspond to R$ 1.61 trillion, but it was expanded because of the constitutional amendment that changed the formula for calculating the ceiling.
Until 2021, the spending ceiling was adjusted for official inflation by the Broad Consumer Price Index (IPCA) accumulated between July two years before and June of the previous year. With the constitutional amendment, the limit started to be corrected by the inflation calculated between January and June and by the inflation projection from July to December, with eventual differences between the forecasts and the official results being compensated later.
With inflation exceeding 10% in 2021, the new calculation formula released R$64.9 billion in this year’s Budget, according to technical note from the Chamber of Deputies. These amounts will finance the Auxílio Brasil of R$ 400 until the end of the year, mandatory expenses with Social Security and other benefits linked to inflation, with social assistance benefits and public health expenses.
