Senate wants committee to avoid wasting money – 06/20/2023 – Panel SA

The Federal Court of Accounts (TCU) will be part of the Fiscal Modernization Committee, a collegiate body that should be created if the bill establishing the sustainable fiscal regime is approved.

The body, established by an amendment by Senator Omar Aziz, will be composed of the Ministers of Finance, Planning and Budget, the presidents of the TCU, Chamber and Senate.

According to the text, currently being discussed in the Senate, the committee will meet at least once a year to define guidelines that improve the governance of federal finances and make the planning, execution and control stages of the budget cycle more transparent and efficient. for financing public policies.

The idea is to waste public resources and avoid unnecessary expenses that currently consume around 0.5% of GDP.

In justifying the amendment, Senator Aziz states that one of the biggest challenges for the success of the Sustainable Fiscal Regime is to increase the quality of public expenditure, tax expenditures and collection, in addition to the efficient management of assets and public debt.

“As an example, the TCU has pointed out that several billion reais have been wasted in undue payments related to social benefits and personnel payroll”, it says in the text.

According to him, in the US, there is a legal framework that requires the public administration to control and reduce undue payments for any type of federal expenditure. There, these overpayments represent 4% of the total expenditure.

“If Brazil had the same level, more than R$ 80 billion would be wasted due to failures. This amount is higher than what is expected to increase annually in the fiscal result, with gradual increases of 0.5% of GDP.”

The evolution of regulation of governance, management, accountability and control of federal finances in the US has been influenced by the existence of the Integrated Program for the Modernization of Federal Finances (JFMIP).

The program is enshrined in the Budgetary and Accounting Procedures Act (BAPA) of 1950 and covers the institutions corresponding in the US to the Ministry of Finance, the Ministry of Planning and Budget and the TCU.

With Diego Felix

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