To meet spending ceiling, government indicates block of BRL 1.7 billion in investments

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According to the economic team, the measure is necessary to compensate for a possible increase in mandatory spending in 2023. The Ministries of Planning and Budget and Finance announced this Monday (22) the need to block R$ 1.7 billion of the so-called discretionary expenses of the this year’s budget. These expenses involve investments and funding of the public machine. The blockade is necessary to ensure compliance with the spending ceiling, a fiscal rule that limits most federal spending to inflation. That rule is still in effect this year. The economic team hopes to approve the project for the fiscal framework, a set of tools that will replace the spending cap, in the first half of the year. According to the government, there was an increase in the projection of mandatory expenses for this year. As the name implies, these expenses must be paid. “Increase in the projection of mandatory expenses indicates the need to block discretionary expenses, in equal value”, says presentation released by the economic team. “The excess represents 0.09% in relation to the total limit of the Expenditure Ceiling (R$ 1,945.3 billion) and 0.87% in relation to the total discretionary expenses of the Executive Branch (R$ 193.9 billion)”, complete the ministries in the document.

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