Without a report, voting on the fiscal framework is left for August
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Delay will put pressure on the preparation of the 2024 Budget
Without the presentation of the report, the complementary bill of the new fiscal framework had the vote postponed until August. The delay will complicate the drafting of the 2024 Budget, which will have to be sent to Congress by August 31.
The Chamber of Deputies ended its session this Friday (7) without discussing the fiscal framework. The Plenary interrupted work after voting on the highlights of the project that recreated the Food Acquisition Program (PAA).
Earlier this afternoon, the president of the Chamber of Deputies, Arthur Lira, had said that the rapporteur for the framework project, deputy Claudio Cajado (PP-BA), was not in Brasília and participated in the voting of the last two days remotely. Until the end of the day, the parliamentarian had not presented the opinion.
On Thursday (6), the Minister of Finance, Fernando Haddad, had said that the delay in voting on the fiscal framework by the Chamber would cause damage to the preparation of the 2024 Budget.
“You don’t deliver the Budget on the 31st of August starting to elaborate on the 10th of August. Approval of the fiscal framework and the CARF [projeto que muda o sistema de votação do Conselho Administrativo de Recursos Fiscais] helps distribute quotas to ministries. There are a series of administrative procedures that are more solid with the parts already approved”,
declared the Minister of Finance.
The economic team wants to submit the 2024 Budget proposal within the new rules, which limit real growth (above inflation) of public spending to 70% of the increase in revenues, limited to a range between 0.6% and 2.5 % above inflation.
Tebet
Planning Minister Simone Tebet is more optimistic. Despite the postponement putting pressure on the portfolio’s technical area, in charge of preparing the Budget, she said she believed it would be possible to deliver the project at the end of August. Tebet pointed out that the economic team can resort to a mechanism in the Budget Guidelines Law (LDO) that allows spending to be conditional on the approval of the framework.
“Regardless of approval of the framework, the spending cap is in effect until December 31. And the deadline for Congress to approve the framework, just missing a review by the Chamber of Deputies, is until August 31st. So if he [o arcabouço] it will be voted on in the first week, second week or third week, it doesn’t matter,” said the minister as she left the National Congress on Thursday (6).
”A LDO [Lei de Diretrizes Orçamentárias] it already came with this condition, it already raised the possibility that, if the framework is not approved, we could be talking about some expenses conditioned to the approval of the framework. So, in the case of the Ministry of Budget [encarregado de elaborar o Orçamento]it’s very good”,
added.
Sent to Congress on April 14, the LDO project, which establishes parameters for the following year’s Budget, was not even considered by the Joint Budget Commission.
According to Tebet, the Planning team will be able to work overtime in August to send the Budget at the end of August within the new framework. “Haddad said ‘it will harm’ in the sense that [o atraso] it will give a little more work to the Ministry of Planning and Budget. But the team is ready to work 24 hours a day and meet deadlines, everything is fine”, reiterated the minister.
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