Government requests postponement of LDO to discuss System S – 12/11/2023 – Market

Leaders of the Luiz Inácio Lula da Silva (PT) government in Congress met on Monday night (11) and asked that the vote on the Proposed Budgetary Guidelines Law (LDO) be postponed because there are a series of points with which there is no agreement, such as the inclusion of System S and the new committee amendments.

“This is a request that we are making to the president of the joint budget committee and it is a request that will also be discussed with the president [da Câmara] Arthur Lira to have more time to look into Congressman Danilo Forte’s report”, stated the government leader in Congress, Randolfe Rodrigues (Rede-AP).

According to him, the expectation is that the LDO will be voted on in the Mixed Budget Committee (CMO) on Wednesday (13) or Thursday (14), and not this Tuesday (12) as was expected by some parliamentarians. The deliberation in the Congress plenary should only take place next week.

One of the points criticized by him and also by the government leader in the Chamber, José Guimarães (PT-CE), is the inclusion of System S within the Budget. The deputy even said he was “shocked” when he saw the proposal.

Randolfe stated that the measure is bad for the Budget, for the federal government, and for the promotion of culture in the country.

Earlier this Monday, the LDO rapporteur, deputy Danilo Forte (União-CE), came out in defense of this device.

“There is no withdrawal of resources from employers’ unions or attempts to change the legal nature of these organizations,” he stated in a statement.

According to Forte, the idea of ​​including System S in the Budget aims to provide more “transparency” for the flow of money, subjecting it to the control mechanisms of the rest of the Union’s items. He also added that the estimated amount of R$30 billion will continue to be “fully passed on to the entities”, without cuts.

Another point criticized by Randolfe and Guimarães was the creation of a new type of amendment and the change in the methodology for executing these resources, which gives Congress more power over the Union Budget.

According to Randolfe, the new procedures “advance somewhat on what is, according to our principle of separation of powers, the attribution of Executive power”. “The execution and reduction of the government’s budgetary margin is something that will bring difficulties,” he said.

“In practice [a proposta como está] expands the budget provision, removing it from the government and making it available to the Legislature. So, it doesn’t seem reasonable to us and we’re going to talk, exhaust the dialogue”, he stated.

For Guimarães, the measure is a “disservice to the Republic”. “There is an institutional problem that we have to solve, because the Executive executes, governs, and the legislative prepares. Roles cannot be reversed despite advances, there must be corrections that we will discuss.”