Deficit of up to R$ 40 billion with new framework can be corrected later, says rapporteur

The rapporteur for the project for the new fiscal framework in the Senate, Omar Aziz (PSD-AM), said on Tuesday night (13) that a possible shortfall of R$ 40 billion in public accounts next year, due to the new fiscal rules , can be corrected later.

The statement was given shortly after a meeting with Minister Fernando Haddad, of Finance, in which he would have asked for the text to be approved as sent by the Chamber of Deputies. The text has not yet begun to be analyzed by the Economic Affairs Commission (CAE) and has already received 31 amendments from senators.

“They [equipe econômica] they think it does not reach R$ 40 billion, but around R$ 30 billion. They do not [pediram ajuste]think that any change will only delay, and there is a commitment that, if there is a collection, you can, through PLN [Projeto de Lei do Congresso
Nacional]adjust and spend more based on what you collect more”, said Aziz in a record by Agência Brasil.

The senator reiterated that he intends to present the report on the same day as the public hearing at the Economic Affairs Commission (CAE), on the 20th.

The proposed fiscal framework itself provides for two mechanisms to recompose the approximately R$40 billion in 2024. However, next year’s budget bill, to be sent at the end of August, will have to be proposed with the cut of discretionary expenses in that amount.

The first mechanism, to be activated in January, will allow the 2024 Budget to be amended to include the inflation recorded in the second half of 2023. The second, scheduled for May 2024, allows updating the estimated revenues in the Budget based on the second revision bimonthly income and expenses.