New fiscal framework: see point by point the text that should be voted in the Chamber

[ad_1]

Rapporteur of the proposal, Deputy Cláudio Cajado (PP-BA) made changes to the text and added ‘triggers’ and sanctions in case the targets are not met. Notes of 100 and 50 reais. REUTERS/Ricardo Moraes With changes made by federal deputy Cláudio Cajado (PP-BA), the text of the new fiscal framework should be voted on in the coming weeks by the Chamber. Cajado is the rapporteur for the proposal sent by the government last month to replace the “spending cap”. ▶️ Context: The rapporteur stated that the new version of the proposal has triggers and sanctions in case of non-compliance with fiscal targets. The text also provides that: a bimonthly assessment of revenues and expenses should be made. public spending growth is limited to 70% of government revenue growth, if the target is met (example: if revenue rises by 2%, expenditure may increase by up to 1.4%); public spending growth is limited to 50% of government revenue growth, if the target is not met (example: if revenue rises by 2%, expenditure may increase by up to 1%); even if government revenue grows significantly, it will be necessary to respect a fixed interval in the real growth of expenses, varying between 0.6% and 2.5%, disregarding the inflation of the period. About the fixed interval, check out an example in the image below, taking into account that government spending was R$ 700 in a scenario with 5% inflation. Understand the fiscal framework in g1 numbers ❓ What are the triggers? “Triggers” are mechanisms provided for in the text that are intended to force expenditure containment whenever government spending exceeds certain limits. See what they are: If revenues do not progress as projected, the government will be forced to contingency expenses; If, even with contingency expenses, the government fails to meet the fiscal targets (zeroing the deficit in 2024 and having a surplus in 2025 and 2026), gradual triggers will be triggered. Check out what they are below. 1️⃣ 1st year of non-compliance with the goal: If the government fails to comply with the established fiscal goals, in the first year the following will be prohibited: creation of positions; changing career structure; creation or increase of aid; creation of mandatory expenditure; readjustment of mandatory expenditure above inflation; expansion of subsidies and subsidies; concession or extension of tax benefit. 2️⃣ 2nd year of non-compliance with the target: If the government fails to meet the target for the second year in a row, new prohibitions will be added to existing ones, such as: increases and readjustments in personnel expenses, such as salary increases; admission or hiring of personnel, except for replacement of vacant positions; public tender, except for the replacement of vacant positions. 🚨 Penalties: Non-compliance with tax goals will not be a crime. On the other hand, non-compliance with contingencies and triggers is currently already an infraction of the Fiscal Responsibility Law – subject to punishment. ❌ Outside the triggers: At the request of President Lula (PT), the project’s rapporteur left out of the expenses containment rules: real readjustment of the minimum wage, with an increase above inflation; annual readjustments of Bolsa Família. Rapporteur for the new fiscal framework, Cláudio Cajado, meets in the Chamber to discuss the VÍDEOS: g1 most watched project

[ad_2]

Source link