Government calls LDO rapporteur to discuss new target – 11/01/2023 – Panel

Government members called this Wednesday (1st) the rapporteur of the LDO (Budget Guidelines Law), Danilo Forte (União Brasil-CE), to a meeting in Planalto with the aim of discussing options for reviewing the 2024 fiscal target.

Ministers Rui Costa (Civil House), Simone Tebet (Planning), Alexandre Padilha (Institutional Relations) and the executive secretary of Finance, Dario Durigan, participated. Defender of the zero deficit target, Minister Fernando Haddad (Finance) was not present.

The objective of the meeting was to evaluate with Forte the alternatives on the table for a possible relaxation of the target. As shown by Sheetthe government is discussing sending a modifying message to revise the target from zero deficit to a deficit of 0.5% of GDP (Gross Domestic Product).

At the meeting, the rapporteur was asked about the deadline for sending the amending message, which is until the vote on the preliminary report, scheduled for next Tuesday (7).

In response, the deputy stated that this was not the only way to change the target in the LDO and indicated that he himself could change the text in his opinion, if there is consensus. Furthermore, after voting on the report, a new deadline for presenting amendments opens. This way, the change could be proposed by a parliamentarian from the base.

Participants did not discuss percentages. This decision will be passed by President Lula (PT), in a meeting that should take place this week.

It will be up to the president to decide how the flexibility will be forwarded to Congress. A wing of the government defends that the initiative falls to Lula, through the modifying message. The president himself has already said that there will be no cuts to the Budget in 2024, in addition to stating that the zero deficit target will “hardly” be achieved next year.

Another wing of the government, however, proposes that the decision not be centralized in Lula, but that the responsibility be shared with parliamentarians.

In meetings with base leaders this Tuesday (31), the SRI minister defended that the discussion on changes to the target only takes place after the approval of measures to increase revenue. Haddad, in turn, has repeated that zero deficit is a goal to be pursued.

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