Building of the Ministry of Economy in Brasília (DF)
by Isabel Versiani
BRASÍLIA (Reuters) – The government is willing to re-discuss the proposal to use a fund supported by federal assets to anticipate the payment of installment payments outside the spending ceiling rule, the Special Secretary of the Treasury and Budget said on Wednesday. , Bruno Funchal.
“The fund was one of the main sources of noise”, said the secretary when dealing with the Proposal for Amendment to the Constitution (PEC) of the Precatório at the Expert XP 2021 event, adding that, given the uncertainty created, the matter will be discussed.
He reiterated that the government will forward to Congress by the end of this month a budget bill that will provide for the full payment of court orders that expire next year, without the possibility of payment in installments.
If the PEC dos Precatórios – which proposed rules for the payment of precatório payments in installments above certain amounts – or another alternative that minimizes expenses is approved in the coming months, the government will send a modifying message with adjustments to the project.
According to Funchal, in order to finance an increase in the values of Bolsa Família, the government hopes to count on revenues generated by a new tax expenditure reduction program being prepared by the economic team. This alternative is being considered given the government’s difficulty in approving its tax reform, which provides for a new taxation of dividends, whose revenues would be used to support the social program.
“Part of this (reduction in tax expenditure) will serve as a source of compensation for the new program,” said Funchal.
He added that the space to increase spending under the spending cap rule, however, will depend on inflation. The secretary recalled that the Budget Guidelines Law considered that inflation measured by the INPC – which corrects expenses such as pensions – will close this year at 7.2%, but the number may be higher than that with the rise in energy prices. A larger increase in mandatory spending would reduce the government’s space for other spending.
TCU
Participating in the same panel in Funchal at the XP event, the minister of the Federal Court of Accounts Bruno Dantas said that he considered the proposal to remove court orders from the spending ceiling “a disaster”. “It shouldn’t even be discussed,” he said, noting that the measure would create scope for Congress to seek to remove other expenses from the ceiling.
He also pointed out that the model of payment in installments suggested by the government, which provides that precatories above 66 million reais are automatically paid in ten years, politicized the issue, as the rule mainly affects federal debts with three States governed today by opposition parties to the government: Bahia, Pernambuco and Ceará.
The three states have the largest court orders related to the payment of the Fundef (Fundo de Desenvolvimento da Elementary School), which account for a significant share of the jump in the total court order bill for next year.
“It’s clear that you’re going to politicize the debate,” said Dantas, adding that the installment payment “inserts an unnecessary political burden.”
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source https://pledgetimes.com/government-is-willing-to-re-discuss-the-proposal-for-a-fund-to-finance-installments-of-precatorio-says-funchal-istoe-dinheiro/
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