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The National Congress approved this dawn (12) Budget Guidelines Act (LDO) for 2019. The case follows for presidential sanction. The conclusion of the vote allows deputies and senators to be released for the parliamentary holidays, which will take place from 18 July to 1 August. Following the mobilization of several categories of civil servants, the text prohibited the granting of readjustments to the civil service and the creation of posts in the federal public service in 2019. Even the measures that would come into force from 2020 were suspended.
The amendment of the text does not provide for such adjustments, but guarantees the possibility that they may be granted in the coming years. In order to be removed from the LDO, several government parties changed the understanding and voted in favor of excluding the pbadage.
According to MP Paulo Pimenta (PT-RS), suspending the readjustment and preventing the hiring of servers is an inappropriate discussion for the end of a management and must be decided by the economic team of the next president of the Republic. "This is a debate that Brazilian society has not yet done, which is exactly the debate we are going to be doing in the election period," the deputy argued, proposing the withdrawal of the vote. ;apparatus.
On the other hand, Senator Dalirio Beber, rapporteur of the proposal to the Joint Budget Committee (CMO), argued that the purpose of the mechanism was to prevent the elected official from respecting the commitments made in the previous administration. "We do not know who will be the next President of the Republic, but we know the degree of difficulty he will face, and this point aims to minimize the scale of the problems the government will have," he said.
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The article providing for a 5% reduction in administrative costs for 2019, including current government expenditures, such as water, electricity, telephone, rents and per diems , was also rejected. The 5% percentage was already a definite reduction after Tuesday's negotiations before the adoption of the rapporteur's opinion on the CMO. Initially, the parliamentary text provided for a 10% reduction of these expenses. For the parliamentarian, the provision was "pedagogical" and "would initiate a process of public sector awareness".
Tax Benefits
The text of the ordinance provides for a 10% reduction as tax breaks – next year. Currently, these profits correspond to 4% of gross domestic product (GDP, sum of wealth produced in the country), for a total of about 300 billion reais.
According to Drink, the introduction of the obligatory device to periodically review the tax benefits and reduced by 10% in 2019 and 50% over the next ten years, aimed to rationalize public spending in a scenario of limited resources.
"These tax exemptions of more than 300 billion reais will be reviewed periodically.
Primary deficit
The LDO guides the development of the following year's budget with economic parameters and the list of priority actions for the government.The approved text maintained the target of primary deficit (negative result of interest-free public accounts) at 132 billion reais (1.75% of GDP) for Union, states, municipalities and the state On this total, the deficit target of the Union will be 139 billion reais; federal state enterprises (irrespective of Petrobras) and Eletrobras), a deficit of R $ 3.5 billion.
For this year, the LDO estimates a primary deficit of R $ 161.3 billion for the Union, the states, the municipalities and ( 19659002)
With regard to the golden rule, which establishes that the government can not not issuing public debt to finance current expenditures (such as the federal government). pensions, pensions and salaries of civil servants), the rapporteur has maintained the provision of the LDO which authorizes the Government to send an extraordinary bill to the Congress to authorize the issuance of obligations in case of non-compliance with the law. rule.
The Constitution grants the prerogative to apply for the supplementary vote, which must be approved by an absolute majority. However, the rapporteur has included the obligation for the government to indicate the expenses to be financed by the new debts, which will be broken down into a specific heading and controlled by the European Court of Auditors.
Source: Agência Brasil
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