These floors existed in Brazilian legislation until 2017, but were modified by the spending ceiling and began to be corrected only according to inflation, that is, without a direct link to a percentage of the product gross domestic (GDP).
The initial rule was taken over by the new fiscal framework, sanctioned by President Luiz Inácio Lula da Silva (PT). The government claims, however, that this obligation will not come into force until 2024.
“Of course, with the approval of the bill by the Federal Senate, additional analyzes may need to be carried out, but the rapporteur will see all this. There is no interruption [da consulta por conta da aprovação do projeto pelo Senado]. If there is a need for additional information, the auditors will inform the rapporteur,” declared Minister Bruno Dantas of the TCU.
The House approves the budgetary framework that will replace the spending ceiling
If the government is forced to meet the minimum investment in 2024, it will have to disburse up to an additional 20 billion reais by December.
Last week, National Treasury Secretary Rogerio Ceron said the government would discuss the issue with the TCU.
“Proportionality, reasonableness, precedents which have already existed in similar situations, to produce in the last part of the year expenses compatible with the tax rules in force,” he then declared.
The budgetary framework provides for floors
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