STF forms majority to release payment of court orders by the government

The Federal Supreme Court (STF) formed a majority this Monday (27) to release the payment of court orders by the Lula government without violating fiscal rules until 2026. The trial took place in the virtual plenary and was scheduled to end at 11:59 pm this Monday, but was suspended following a request from minister André Mendonça. Precatório are payments owed by the Union due to final court rulings and the amount must be foreseen in the budget.

In September, the Federal Attorney General’s Office (AGU) asked the STF to overturn the rules created in the last administration, which defined an annual ceiling for expenses with the payment of court orders until 2027. The expectation is that the government will be authorized to pay off, in 2023, the stock of R$95 billion in court orders held up until now through extraordinary credit.

The rapporteur, minister Luiz Fux, voted for the unconstitutionality of imposing a ceiling on the payment of court orders between 2022 and 2026. Fux argued that the immediate solution to the case is the recognition of the legitimacy of the measure only for the 2022 financial year. , the Executive will be able to resume payment of court orders without any budgetary limitations from the 2023 financial year.

The rapporteur also determined that the Union immediately eliminate the court-ordered liabilities accumulated in the 2022 financial year. Fux refused the request so that court-ordered debts could be classified as financial expenses by the government, which would make it easier to circumvent rules of the new tax framework, approved this year by Congress, informed the Brazil Agency.

Despite the suspension of the analysis, the majority of ministers decided to advance their votes. During the virtual trial there is no discussion on the topic, the magistrates just cast their votes in the Court system. So far, the score is 8-0. Ministers Luís Roberto Barroso, Edson Fachin, Cármen Lúcia, Dias Toffoli, Alexandre de Moraes, Cristiano Zanin and Gilmar Mendes followed Fux’s understanding. Now, Mendonça will have 90 days to analyze the case, after this period the files will be released for trial.