Government sends draft Budgetary Guidelines Law for 2024 to Congress

The federal government sent to Congress, this Friday (14), the 2024 Budget Guidelines Law (PLDO) to the National Congress. It was prepared in accordance with current fiscal rules (expense ceiling).

However, the PLDO brings permission for the Annual Budget Bill (PLOA) of 2024 to provide for primary expenditure in an amount greater than the spending ceiling, subject to the approval of the new fiscal framework.

The expectation is that the project for the new framework, which will replace the spending ceiling, will be delivered to Congress next week.

As a result, the proposal “brings permission for the 2024 Annual Budget Bill to provide for primary spending in excess of the spending ceiling, subject to the approval of the new fiscal framework”.

The Minister of Planning, Simone Tebet, had already announced that the LDO delivered to parliamentarians would be “atypical” for including both scenarios. The PLDO predicts that the minimum wage will be R$ 1,389 in 2024, considering only the correction of the value forecast for December 2023 by the National Consumer Price Index (INPC).

In addition, the government estimates that “expenditures conditioned to the approval of the new framework will total BRL 172 billion in 2024”. The ministry stated that this authorization “will enable the recomposition and execution of priority public policies for the country, the functioning of the machine and the Union’s investment”.

The ministry pointed out that in this scenario, “the primary result in 2024 is neutral (0% of GDP), with net revenue from transfers and primary expenditures (including the BRL 172 billion conditioned to the framework) estimated at BRL 2.149 trillion”.