Congress approves 2024 Budget with more resources for the electoral fund and record for amendments

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The budget does not present a defined value for the minimum wage, as an already approved law addresses the matter. The text also includes a target of zero fiscal deficit for government accounts in 2024. Congress approved this Friday (22) the 2024 Budget project, which provides an estimate of revenue for next year and sets limits for public spending. The proposal is analyzed in a session of the National Congress. The approved text includes a record amount for parliamentary amendments next year, which, according to information from the Mixed Budget Committee (CMO), will total R$53 billion. In 2023, the value was R$37.3 billion (see below). This week, when the Budgetary Guidelines Law (LDO) was approved, the rapporteur, deputy Danilo Forte (União-CE), included in the text a calendar for the release of mandatory amendments (of mandatory payment). Mandatory amendments are of two types: individual ones (addressed to each senator and deputy); and bench ones (intended for state benches). Under the previous rule, there was no deadline for the government to pay them. With this, the Palácio do Planalto had more freedom and could choose to issue the release on the eve of important votes, as a means of negotiation. Electoral fund The text approved by the National Congress also inflated the values ​​foreseen for the electoral fund in 2024 to R$4.96 billion. The amount, which must finance campaigns in municipal elections, is the same as that for the 2022 elections (president, governor, senator and federal deputy). The government had proposed a smaller allocation of R$940 million. The increase was R$4 billion. The increase occurred despite the request from the President of the Senate, Rodrigo Pacheco (PSD-MG), for the value to return to R$940 million, as per the government’s proposal, and an intermediate value of around R$2 to be negotiated, 7 billion (close to what was spent in the 2020 municipal elections), over the course of next year. At the same time, the amount allocated to the new Growth Acceleration Program was also reduced, which could have around R$55 billion in 2024, according to information from the Budget Committee. The value is R$7.3 billion lower than the R$61.3 billion proposed by the government. The approved Budget does not include a value for the minimum wage. The government’s proposal included R$1,421. However, based on the rules defined by law, it tends to fall to R$1,412, as inflation was lower than previously estimated. A presidential decree will set the value by the end of the year. Target for public accounts Congress approves the rules for the 2024 Budget with zero deficit The budget maintains the fiscal target close to zero (small surplus of R$3.5 billion), as proposed by President Luiz Inácio Lula da Silva’s economic team. This objective is considered bold by the financial market, which projects a loss of R$90 billion in 2024. In order for the goal of balancing the accounts in 2024 to be achieved, the government seeks R$168 billion in extraordinary revenues, in addition to, among others points, raise the tax on diesel oil and cooking gas in January. The budget points out, however, that there is a tolerance range of R$28.8 billion more or less in relation to the target for public accounts, in accordance with what is established by the fiscal framework, the new rule approved this year. There is pressure from the political wing of the government for the fiscal target to include a deficit. This change could still be made at the beginning of next year. A possible change in the target, to foresee a deficit in the accounts in an election year, would help the government to minimize spending blocks to fulfill its promises. And with that, reduce the impact on infrastructure investments. Main expenses See below some of the main expenses foreseen in the 2024 Budget: Investments with Union resources total approximately 73 billion, according to the Mixed Budget Committee, a value greater than that proposed by the economic team in August (R$ 58.9 billion). Ministry of Education will have around R$180 billion, the same amount proposed by the federal government. The Ministry of Health will be able to count on approximately R$231 billion, an amount that was slightly above that proposed by the Executive. Ministry of Defense had a budget of R$126 billion approved for 2024, the same level proposed by the federal government. Ministry of the Environment will have R$3.72 billion in resources, compared to the R$3.64 billion proposed by the government. Bolsa Família Program could count on almost R$170 billion in 2024, with a monthly benefit of R$600, and an additional R$150 per child up to six years old. It is the same value proposed by the government. State-owned companies The budget also includes a deficit target of R$7.2 billion for non-dependent state-owned companies, part of the Global Expenditures Program (PDG). “Companies from the Petrobras and Empresa Brasileira de Participações em Energia Nuclear e Binacional – ENBPar groups, nor expenses from the investment budget allocated to the New Growth Acceleration Program up to the amount of R$ 5 billion, are not included in the calculation of this target. “, added the rapporteur. This year, state-owned companies are expected to record a deficit of R$4.5 billion, still higher than predicted in the 2023 budget. Big numbers The Budget also brings general numbers for the government next year, such as the total value of all planned expenses . See below: The total revenue estimated in the Fiscal and Social Security Budgets is R$5.4 trillion. The total value of expenditure is R$5.4 trillion, of which R$1.73 trillion refers to the refinancing of public debt. After separating the amounts for the debt, R$3.66 trillion remains for the fiscal and social security budgets. The value for expenses subject to the fiscal framework rule, which sets a spending ceiling, is R$2.06 trillion. The limit for expenses for the Executive is R$1.97 trillion, for the Legislative is R$16.3 billion and for the Judiciary is R$56.1 billion, in addition to another R$8.5 billion for the Public Ministry of the Union and R$710 million for the Public Defender’s Office.

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