Chamber releases another R$15 billion to Lula with change in fiscal framework

The Chamber of Deputies approved this Tuesday (9) a device that could allow the government to bring forward the expansion of the 2024 spending limit and release extra expenses estimated at around R$15 billion.

The text was approved by 304 votes to 136 and, if validated by the Senate, will allow President Luiz Inácio Lula da Silva (PT) to unlock this amount immediately “by act of the Executive Branch”, without the need for new approval by the National Congress.

The measure was inserted at the last minute in a complementary bill that deals with the recreation of DPVAT, insurance that compensates victims of traffic accidents. The text’s rapporteur was deputy Carlos Zarattini (PT-SP) with government support – he, however, did not participate in the vote and had the report read by deputy Rubens Pereira Junior (PT-MA), Lula’s deputy leader in the Chamber.

The change in the fiscal framework provides that the government may open additional credit if the revenue assessment is favorable in the second two-month Budget assessment report, to be released on May 22. However, the text approved by parliamentarians brings forward this deadline, allowing credit to be opened after the first bimonthly assessment of income and expenses, already published on March 22.

The measure aims to guarantee the government the release of this amount amid uncertainties about revenue, especially related to adjustment measures and Petrobras dividends. In August last year, the government announced measures that would reinforce cash by R$167.6 billion, but later reduced it to R$144.13 billion.

The package of measures to close the Budget accounts maintained most of the revenue projections, with some changes. The government is still seeking flexibility in measures such as the reimbursement of municipalities and companies in 17 sectors.

Furthermore, it tries to guarantee the inflow of Petrobras’ extraordinary dividends, estimated at R$12.59 billion, although the most likely scenario is the payment of only 50% of this amount.