The Federal Court of Accounts (TCU) approved the consultation of the Civil House so that the government can open extraordinary credit (outside the spending ceiling) and prevent the interruption in the payment of social and labor benefits. Provided for unforeseen and urgent expenses, according to the Constitution, extraordinary credits are outside the federal spending ceiling.
With the approval, the government will be able to edit a provisional measure to open extraordinary credit to maintain the payment of the Benefit of Continued Provision (BPC), unemployment insurance and court expenses, among other expenses. According to the Civil House, the reduction in the queue for the release of benefits from the National Social Security Institute (INSS) resulted in higher spending than estimated.
At the end of November, the government contingency (blocked) R$ 5.7 billion from the Federal Budget to meet the spending ceiling. Of this total, the decision is necessary to pay an additional BRL 2.3 billion in Social Security benefits and because of the suspension of the provisional measure that postponed to 2023 the transfer of BRL 3.8 billion in aid to the cultural sector of the Law Aldir Blanc.
According to the Civil House, which forwarded the consultation at the request of the Ministry of Economy, there is no more space on the ceiling to accommodate the increase in INSS expenses, which would require payment through extraordinary credit. According to the government, the growth in expenses occurred in an “unpredictable and extraordinary way”.
The rapporteur of the process, Minister Antonio Anastasia, issued an opinion in which he recommended the approval of the process. However, he recalled that the government is responsible for keeping public spending consistent. He was joined by most of the ministers. However, some criticized the Civil House’s request.
For Minister Vital do Rêgo, the increase in INSS expenses was not extraordinary. According to him, the government would be able to predict growth and open up supplementary credit (relocation of funds), which is within the spending ceiling.
Minister Benjamin Zymler said the government is using the extraordinary credits “in an unorthodox way”. According to him, the lack of fiscal space only occurred because of the “excess of RP-9 amendments” (rapporteur’s amendments), which are within the spending ceiling.
Deputy minister Weder Oliveira voted against the government’s request, arguing that the demand does not fit the requirements demanded for the opening of extraordinary credits. He was accompanied by ministers Walton Alencar and Augusto Sherman.
Election
In today’s session, the TCU elected Minister Bruno Dantas president of the body and Minister Vital do Rêgo vice president and corregidor. The two will have a one-year term starting January 1st, extendable for another year, allowing them to remain in their posts until the end of 2024.
Since the end of July, when Minister Ana Arraes forcibly retired, Dantas has commanded TCU. He assumed the presidency in office, in a buffer term, until the end of this year. During this period, the vice-presidency was vacant.
