New fiscal framework project has 31 suggestions for changes in the Senate

At least 31 suggestions for changes in the project for the new fiscal framework have already been proposed by senators even before the start of the discussion in the Economic Affairs Commission (CAE), scheduled for the coming weeks. The text, which was approved by the Chamber of Deputies at the end of May, includes triggers for adjusting expenses and sanctions against the government if the primary result targets are not met.

In the Senate, the leader of the government, Senator Randolfe Rodrigues (non-AP party), is trying to reach an agreement so that the text passes without alterations and does not need to return to the Chamber for a new discussion. The goal is to approve the new fiscal framework in the plenary this month.

However, among the amendments already presented, is the one that excludes from the new spending ceiling the transfers with the Basic Education Maintenance and Development Fund (Fundeb) and the nursing floor. Senator Izalci Lucas (PSDB-DF) also suggested withdrawing the Federal District Constitutional Fund (FCDF) which, according to him, had already been endorsed by President Luiz Inácio Lula da Silva (PT).

“We already had the support of many senators, we even have the rapporteur helping us, I participated in the meeting with President Lula along with the leaders of the Senate, and it was clear that the president was unaware and did not take any initiative for this. He volunteered with the leaders who were together in the meeting to work on either the withdrawal or veto,” he said.

The fund is used to cover education, health and public security expenses in the federal capital and could mean the end of a transfer of R$ 87 billion in ten years. The proposal’s rapporteur in the Senate, Omar Aziz (PDS-AM), said that he will still decide whether or not to accept the requests for changes presented by the senators.

Carlos Viana (Podemos-MG) said that, depending on the commission’s progress, the vote on the project in plenary could be quick, but without applying an urgency regime.

“The most important thing about this matter is that it has already been discussed in depth in the Chamber with the participation of senators. We at Podemos take to the ministry [da Fazenda] a series of suggestions, most of which were accepted, on the issue of fiscal control, transparency and, mainly, on increasing public spending within a very explicit control”, he added.

The project that will replace the current spending ceiling is considered of paramount importance by the government’s economic team, which intends to zero the primary deficit next year and obtain a surplus as of 2025. However, market analysts are skeptical about the result targets set by the government, mainly because it relies heavily on increased tax collection.