Congress concludes LDO vote and reverses ban on readjustment for servers in 2019 | Policy

With approval, the text will continue to sanction President Michel Temer.

The ban on readjustment was provided for in the basic text of the LDO the following year, approved on the night of this Wednesday (11).

The basic text also included a ban on the public service in 2018. Congress also struck down the rule.

The Budget Guidelines Act serves as the basis for the government to draft the Union Budget for 2019, which will be sent out by the end of August.

During the negotiations on Wednesday, the rapporteur has given in and modified the opinion: he has reduced the reduction of administrative costs from 10% to 5%.

Nevertheless, at dawn, parliamentarians changed this point, removing any percentage reduction in spending.

See below for other items of the LDO approved by Congress:

Tax Benefits: Prevents the government from granting new incentives or tax benefits, but allows the government to extension of existing ones for a maximum of five years, the amount of the premium or benefit is reduced by at least ten percent per annum and the related act is accompanied by objectives, targets and indicators related to public policy promoted. "

Proposed by parliamentary funds: Prohibited readjustments to the duties of parliamentarians and resources used in the exercise of their mandate.

" Basic Rule ": By this mechanism, the Constitution prevents credit operations (public debt) of an amount greater than the total of capital expenditures (such as investments).

There is an exception to this rule in the constitutional text itself. same: the authorization by additional or special credit, approved by the National Congress.

The rapporteur has maintained a provision provided for in the text of the LDO sent by the executive power, which provides for expenditure subordinate to the law. approval of this credit.In a joint note on the LDO, the House and Senate budget consultants consider it unconstitutional to condition spending on the approval of this loan.

For the practices In practice, the proposal would give the draft budget of the Union prior authorization to benefit from an exception to the golden rule, which could raise issues before the European Union. Federal Court.

Senator Randolfe Rodrigues (Rede-AP) opposed the prohibition of the redevelopment of servers. For the parliamentarian, the fence would mean a "return to the past".

"Back to the worst times of the 90s. Establish a freeze even for the replacement of lost wages, freeze the call for public offers for next year, it is a decree of death and total demolition of the public service. "

Congressman Claudio Cajado (PP-BA) said that although the text has been "widely criticized", Congress can not be "irresponsible" and "blinded" to the reality of the country's public accounts.

"The proposal is criticized, but we must defend it: the rapporteur was extremely responsible in his report, he made a real factual report, according to the reality that Brazil is going through," he said.