CMO votes on LOA final report with smaller PAC cut; follow

After negotiations with the federal government, the general rapporteur of the 2024 Budget, deputy Luiz Carlos Mota (PL-SP), decided to reduce the cut in the new Growth Acceleration Program (PAC). When releasing the complement to the report, this Thursday (21), he updated the expected cut in the PAC to R$6.3 billion. The text is still being voted on by the Mixed Budget Committee, before going to the Plenary, if approved.

Previously, in the report presented on Wednesday (20), the predicted cut would be around R$17 billion. In this way, approximately R$11 billion will be restored to the program’s budget and the total forecast for next year should be R$54 billion. The change in the cut was requested by the Minister of the Civil House, Rui Costa.

According to the rapporteur, the recomposition was made possible by updating the percentage of the National Consumer Price Index (INPC), considered for the correction of the minimum wage, which went from 4.48% to 3.85%.

In relation to the minimum wage, the value of R$1,412 should prevail, below the expectation presented by the federal government, which would be R$1,421 in 2024.

According to the rapporteur, the government indicated a list of budgetary programs for various ministries and other bodies to be reduced, depending on the compatibility of sources.

The lack of agreement to rebuild the PAC between the Executive and Congress delayed the vote on the LOA, which was scheduled to begin this Thursday morning (21), and only began in the late afternoon. If the text is approved by the committee, the text will be analyzed at the National Congress session.

Below is the Budget opinion:

General:

• Revenue: R$5.5 trillion;
• Expenses: R$5.5 trillion;
• Debt refinancing: R$1.7 trillion.

Powers

• Executive: R$1.9 trillion;
• Legislative: R$16.3 billion, of which:
  • Chamber: R$7.8 billion;
  • Senate: R$5.8 billion;
• Federal Audit Court: R$2.7 billion;
• Judiciary: R$56.1 billion;
• Public Ministry: R$8.5 billion;
• Public Defender’s Office: R$710.4 million.

New credits

After presenting the new report with additions, the CMO approved a special credit of R$573 million (PLN 38/23) for the capitalization of Banco do Nordeste do Brasil. The government justified the request due to the bank’s role in the development of the Northeast Region and its role in public policies through the operationalization of the Northeast Constitutional Fund.

A smaller part of the credit will be used so that the parliamentary benches of Roraima, Acre, Goiás and Rio Grande do Sul can change their amendments to the 2023 Budget, shifting resources to the Ministries of Justice, Defense, Cities and Ports and Airports .

Supplementary credit of R$ 10.9 million (PLN 31/23) was also approved for works by the Federal Highway Police.

Increase in amendments

In the final report, deputy Motta also added the amount of R$53 billion for parliamentary amendments, in addition to increasing committee amendments from R$11.3 billion to R$16.7 billion.

Here are the predicted values:

• individual amendments – R$25 billion;
• bench amendments – R$11.3 billion;
• commission amendments – R$16.7 billion

In the Budget Guidelines Law (LDO), approved on Tuesday (19), the rapporteur, deputy Danilo Forte (União-CE), included a provision that imposes on the Executive a schedule for releasing mandatory amendments. Previously, there was no deadline for the government to release the resources, which allowed Planalto to pay the funds on the eve of important votes.