Lindbergh to introduce amendments against “zero deficit” goal

In yet another round of arm wrestling between the government and Congress over the fiscal target, deputy Lindbergh Farias (PT-RJ) said that he will file two amendments to the Budgetary Guidelines Bill (LDO), which was voted on this Tuesday (7) at the Joint Committee on Plans, Public Budgets and Inspection (CMO).

The announcement was made one day after the government leader in Congress, senator Randolfe Rodrigues (no party-AP), guaranteed that the government would not ask Congress to modify the “zero deficit” target.

One of the amendments that Farias intends to present changes the target to a primary deficit of 0.75% of the Gross Domestic Product (GDP); the other changes the target to a primary deficit of 1%.

“According to Felipe Salto (former Secretary of Finance of São Paulo), a deficit of 0.5% will require a contingency of R$40 billion at the beginning of the year. This will stop the PAC and social programs”, stated Farias.

Voting on the main report is expected to take place the week of November 20th. Parliamentarians have until the 16th to present amendments.

Despite Randolfe’s promise, the coordinator of the PT bench at the CMO, deputy Odair Cunha (MG), said that the party will not prevent parliamentarians from presenting amendments, but the bench as a whole will only ask for changes to the text if the determination comes from the government .

The uneasiness between Congress and the government began on October 27th, when President Lula (PT) stated, during coffee with journalists, that the market is “greedy” and that the government will “hardly” meet the target of “zero deficit”.

According to the Minister of Finance, Fernando Haddad, meeting the target is essential to keep the fiscal framework in place.

The presidents of the Chamber, Arthur Lira (PP-AL), and the Senate, Rodrigo Pacheco (PSD-MG), have already taken a stand in defense of the “zero deficit” target proposed by Haddad.