Haddad promises to solve court orders by the end of his term

The Minister of Finance, Fernando Haddad, announced this Friday (4th), that the government intends to solve the expenses with precatorios, debts resulting from judicial sentences and which are no longer subject to appeal, until the end of the mandate.

According to the minister, data from the National Treasury indicate that the flow of precatorios accumulated in the last 12 months was around R$ 7 billion – below the projection, which were between R$ 20 billion and R$ 30 billion. The number is much lower than that announced by the Federal Court of Auditors in July this year.

“The economic area will look into this issue and seek solutions for it. It is a bad legacy from the previous government. It is the first time in history, as far as I can remember, that the Union fails to honor its commitments,” Haddad told journalists. .

The minister also stated that the current government will not leave a “bomb” for the next president who takes over from 2027, “whoever he may be”.

Haddad informed that the value must be reduced because final and unappealable decisions had a much smaller volume.

Government value is well below expectations

Haddad’s estimate does not correspond to the figures released by the Federal Court of Auditors (TCU) in July this year.

In 2021, the federal government paid off $55.5 billion in debt of this nature. The highest value in the historical series was recorded last year, surpassing more than R$141 billion, according to data from the Federal Court of Auditors (TCU).

And the TCU also informed that the value of precatorios could reach R$ 744.1 billion by the end of 2026, and 2% of GDP in 2027. According to the agency, there is a ‘fiscal risk’ in relation to the size of the debt with precatories.

The TCU also states that the change in form “will imply the progressive accumulation of these obligations and, therefore, an increase in the public debt.”