Debt explosion with writs worries Justice – 07/18/2023 – Panel SA

The National Treasury report became the subject of conversations between ministers of the Supreme Court, the STJ (Superior Court of Justice) and federal judges.

In the text, it is written that public spending will jump to 20% of GDP in 2027. In 2022, it was 18.2% of GDP.

This will happen because in 2027, the first year of the next president’s term, the deadline defined by the constitutional amendment that repressed payments of precatories will expire. Up front, they will have to be paid all at once, generating a spending peak estimated by the Treasury at around BRL 200 billion.

Only in 2032, according to the report, spending will fall to 17.8% of GDP.

Precatorios are government debt securities with final court judgments. Non-payment means non-compliance with the decision.

In 2021, however, Congress enacted a constitutional amendment, creating a payment queue for these bonds based on the Union Budget.

Even so, even food court orders, those with lower values ​​of a social nature (retirement, pension, among others), are no longer paid due to budget restrictions.

Discredit

Behind the scenes, the ministers of the STF and STJ are already betting that the next president will try a new legislative maneuver aiming at the installment or delay of the payment of precatories so that he has breath at the beginning of his term.

The assessment is that, despite legal protection, this situation wears down the image of Justice, whose decisions are not complied with, even after years of litigation.

For Ajufe (Association of Federal Judges of Brazil), it is a serious offense to the independence of the Judiciary.

“The gap, above R$ 200 billion, is unprecedented in history, even surpassing the 2023 budgets for health (R$ 146 billion) and investments (R$ 165 billion)”, says Nelson Alves, president from Ajufe.

“The credibility crisis of the economy and the judiciary will be immense, including for those who are thinking of investing in Brazil in the coming years. The main losers will be those citizens who seek Justice to see their rights respected, in most cases beneficiaries of social benefits and pensions.”

With Diego Felix

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