Tax framework must be delivered to Congress on Tuesday with changes – 04/17/2023 – Market

The government of President Luiz Inacio Lula da Silva (PT) must deliver to the National Congress this Tuesday (18) the proposal for a fiscal framework to replace the spending cap rule. Ministers from the political and economic areas showed alignment in the speech regarding the date.

Prior to submission, the economic team evaluated a change to the final text of the framework. With the aim of showing a greater commitment to the parameters of the new fiscal rule from the outset, the team involved in the preparation of the project decided to include both the framework concepts and the values ​​used for the next four years in the final version of the complementary law.

The text leaves the possibility of changing the parameters by means of ordinary law from the next government. At first, the idea was to define the framework concepts in complementary law and the parameters in ordinary law.

The rule predicts that the real increase in expenditure, above inflation, will be equivalent to 70% of the variation in revenues – ensuring a floor of 0.6% and a ceiling of 2.5% of real growth in expenses per year.

The alteration may, therefore, facilitate changes in fiscal rules after the end of the Lula government. This is because the processing of a supplementary bill requires a special quorum, with an absolute majority of deputies from each legislative house. An ordinary law project, however, requires only a majority of the parliamentarians present in the session.

Upon leaving a meeting with Lula, at the Alvorada Palace, this Monday morning (17), Minister Alexandre Padilha (Institutional Relations) stated that the economic team’s proposal should be delivered by the representative directly to the Senate presidents. and the Chamber of Deputies, respectively Rodrigo Pacheco (PSD-MG) and Arthur Lira (PP-AL).

Lula is going to hold a large meeting in the Planalto with ministers, governors and heads of powers, to discuss measures to combat violence in schools.

“And also [temos] the expectation of tomorrow, in the meeting that we will have on the subject of schools, and President Lula’s concern is the defense of schools, of the school as a space for the defense of life […] invited the president of the Chamber, of the Senate, of the powers, and the president wants to take advantage of this moment [para apresentar o arcabouço]”, said Padilla.

The head of Institutional Relations said he hopes that the House will define later this week who will be the rapporteur of the proposal during the course of that legislative House. According to Padilha, Lira would have stated that the fiscal framework could be voted on in 15 days, but he stressed that the government’s forecast is that the measure can be approved, both in the Chamber and in the Senate, by the end of the semester.

“There will be this moment tomorrow, also with the president of the Chamber and of the Senate, where he [Lula] must, together with Minister Haddad, deliver the proposal, the text of the new fiscal framework. The expectation is that, when it is delivered tomorrow, the Chamber will be able to define the name of the rapporteur for the fiscal milestone so that we can vote on it with the speed and urgency that the country asks for”, he added.

According to Minister Fernando Haddad (Finance), the referral “depends on the Civil House and on an agreement with the presidents of the Houses”.

“President Arthur Lira is not in Brasilia today [segunda-feira]I think that [a entrega do arcabouço fiscal ao Congresso] left for tomorrow [terça-feira]”, he said.

Earlier, Minister Simone Tebet (Planning) said that this Monday morning she signed the text of the complementary bill of law for the new fiscal framework and sent the document to the Civil House.

“I just signed [o texto] and, therefore, we have already forwarded it to the Civil House at this time by the Ministry of Planning and Budget, giving the ok in relation to the fiscal framework”, said the head of the portfolio during the presentation of the PLDO (Budget Guidelines Bill).

She also said that, according to the Civil House, the expectation is that the new fiscal rule will be sent to Congress between Monday and Tuesday, but that the decision would be up to President Lula.

“We just closed the text, I signed it, it just arrived at the Civil House. Now, it will be presented to President Lula. He will sign it in his time, I don’t know if today [segunda]tomorrow [terça] or later. It’s a political decision. There is an expectation that this week, as soon as possible within the next few hours, he can reach the National Congress”, said Tebet.

Earlier, the leader of the government in the Chamber, José Guimarães (PT-CE), also stated that the text of the fiscal framework should be delivered by the Executive to the National Congress this Tuesday (18).

In an interview with GloboNews, the parliamentarian said that the text could be delivered after a meeting at the Planalto Palace that should be attended by Lula, ministers and the presidents of the Chamber, Arthur Lira (PP-AL), and of the Senate, Rodrigo Pacheco (PSD-MG).

“I think it will be the best time for Minister Haddad to formally deliver the text of the country’s new fiscal policy,” he said.

Guimarães also stated that there is a commitment with Lira to vote on the text in the House “quickly”. “From my perception, from the political environment that is set, we will vote on this matter in 15, 20 days for it to go to the Senate.”