Without a deadline, Lira postpones the vote on the new fiscal framework

After meeting with party leaders of the Chamber of Deputies, the President of the House, Arthur Lira (PP-AL), decided this Tuesday (1) to postpone, indefinitely, the vote on the new fiscal framework in the House. The decision was taken in common agreement with all leaders, including the allied base of the federal government.

The proposal, which needs to be voted on by federal deputies, had already been approved by the Chamber in May of this year. However, the new text has more than 31 suggestions for changes after being approved by the Senate in June.

The postponement, according to Lira, is to await the outcome of the ministerial reform, which may open space for PP, his party, and Republicans within the government. At the meeting, leaders repeated criticisms of the government’s political articulation and called into question the support for Planalto’s proposals in the House.

The approval of the project is essential for the construction of the 2024 Union Budget. The general lines of the new proposal, which will replace the spending ceiling, were maintained as outlined by the government of Luiz Inácio Lula da Silva (PT). As proposed by the economic team in the text sent to Congress, expenses may grow annually, above inflation, up to the equivalent of 70% of the increase in revenues, however respecting the maximum limit of 2.5% of real increase. In the event of low growth or a drop in revenue, there would be a floor of 0.6% growth in expenses above inflation.