Chamber approves final version of the new Fiscal Framework; text goes to sanction

The Chamber of Deputies approved this Tuesday (22), by 351 votes in favor and 92 against, the text of the new Fiscal Framework, to replace the current spending ceiling of the federal government. The proposal now goes to the sanction of President Luiz Inácio Lula da Silva (PT).

PLP 93/2023 limits annual growth in expenses to 70% of the increase in revenue. The text approved in the Chamber was changed by the Federal Senate, and returned to the Chamber, which approved the basic text prepared by the rapporteur, Deputy Claudio Cajado (PP-BA). It included triggers for expenditure adjustments and government sanctions in case the primary result targets are not met.

In addition, in an agreement struck with the leaders of the parties and government technicians, the deputies agreed to keep expenses with the Constitutional Fund of the Federal District and the Fund for the Maintenance and Development of Basic Education and the Valorization of Professionals outside the spending ceiling. of Education (Fundeb).

The deputy leader of the PL, deputy Alberto Fraga (DF), highlighted the importance of keeping the DF fund as an exception to the spending limit, as this fund pays for education, security and health expenses in the capital of the Republic.

The maintenance of Fundeb was also highlighted by parliamentarians as an advance in Cajado’s text. For Congresswoman Tábata Amaral (PSB-SP), this was a victory for education.

Deputy Gilson Marques (Novo-SC) criticized the maintenance of funds in the text of the framework, in the form of amendments, claiming that this will not solve the problems of Brazilian education. The amendments that kept the ceilings outside the spending cap were passed by 379 yes votes to 64 no votes.

The other alterations to the text of Complementary Law Project 93/2003 were rejected by the Plenary. Cajado said that most of the amendments made to the text by the Senate changed rules that were built in several conversations with segments and leaders, and therefore should not be maintained.

For the rapporteur, the text maintains the credibility and predictability of the economy, and was the result of a broad agreement built with the leaders of the parties in the Chamber and the government.

The Federal District bench also celebrated the exclusion of the Constitutional Fund of the Federal District from the spending limits provided for in the text. “Brasília will breathe a sigh of relief today. This fund guarantees our health, our education and our security”, stated deputy Gilvan Máximo (Republicanos-DF).

The text establishes a new fiscal regime focused on the search for a balance between revenue and expenses. Expenses will be conditioned to meeting result targets.

Highlights to the text

After the Senate approved the changes, federal deputies analyzed the highlights presented by the parties in an attempt to include other amendments to the text.

One of the amendments left spending on science, technology and innovation out of bounds. And another amendment voted separately created the Fiscal Modernization Committee to improve the governance of federal finances and make the planning, execution and control stages of the budget cycle more transparent and efficient for the financing of public policies.

The highlights presented were withdrawn or rejected by the Plenary. The approved project now goes to be sanctioned by the Presidency of the Republic.