Higher-level population to be corrected for higher population inflation, prev. LDO – Economy



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Brasília, 02 – The report of the draft law on the guidelines (LDO) of 2019 provides that the minimum health expenditure will be corrected not only for inflation, but also for the rate of population growth. According to the report, Senator Dalrio Beber (PSDB-SC)

"We consider it essential to at least maintain the per capita spending in the sector." Thus, we received several suggestions "

The National Congress had already tried to insert a similar device in the LDO of 2018, but the pbadage was finally rejected by President Michel Temer.The rule of the expenditure ceiling provides that the minimum for health is updated year after year only for inflation.

The report still provides a floor for welfare expenditures, an area that was not targeted by the spending ceiling In the opinion, Beber predicts that the minimum for the zone in 2019 would correspond to the expenditures approved in the Oral Act of 2018 plus the inflation of the period.

Costing and Relation

The report of the LDO project of 2019 states that the government should reduce its administrative costs by at least 10% compared to 2018. "This measure, of course, is difficult but necessary to contribute to the fiscal effort aimed atto avoid or reduce the need for debt in the form of credit operations. to finance current expenses ", says the opinion of Senator Dalrio Beber

In the rule included in the text, the method of choice of expenses to impact with the economy should be explained in the message that sends the annual bill of 2019

To contribute to this, the rapporteur excludes from the text the possibility of building, enlarging or acquiring official residences of the members of any one of the Powers and State Ministers and acquire automobiles. "It is possible that the resulting economy is not expressive at first. However, a pedagogical rule is established, as well as the need to move forward in the revision of public expenditures, "says the opinion.

Government projections indicate a margin of $ 98.4 billion reais l & rsquo; Next year for discretionary spending, which (The National Treasury Secretary, Mansueto Almeida) said that the higher estimate of inflation (due to the truckers' strike) could open more money. Space in the spending ceiling in 2019.

New president

The LDO 2019 project report proposes that the new president submit a plan for reviewing income and expenditure as well as measures to make in the first quarter of his tenure

Senator Dalrio Beber says the government must take action in the face of imminent non-compliance with the so-called "golden rule" of Oration, which prevents emi from paying current expenses, such as wages. By 2019, the government must use additional funds to fund about 260 billion reais of expenditures (including salaries and benefits) through leveraged funds.

The PLDO text states that the President shall submit to the National Convention a plan for the review of expenditures and receipts, including incentives or benefits of a financial, tax or credit nature, for 2019 to 2022. The plan should be accompanied by corresponding legislative proposals and estimates of the respective annual financial implications.

Revenue recomposition measures should give priority to initiatives to reduce incomes and increase revenues, counteract evasion and escalation. taxation and recovery of tax credits. The PLDO still prohibits the creation of new wars in 2019 and requires a 10-year benefit reduction schedule, so that by the end of this decade the volume of redemptions will not exceed 2% of the domestic product. Gross Domestic Product (GDP).

The plan and measures must be submitted no later than March 31, 2019 or the date of sending the draft supplementary credit, whichever comes first. PLDO also proposes that the President send a proposal for a constitutional amendment (CEP) to change the rule of thumb.

Recently, Pedro Paulo (DEM-RJ) introduced a CEP that changes the mechanism of the rule of gold and establishes strong spending when there is a danger that the rule will be ignored. When the government violates the constitutional standard, it engages in other mechanisms to reduce expenditures, including the revocation of board positions and the reduction of tax benefits. The proposal has not yet been pbaded in Congress – despite the federal intervention in Rio, the text could be seen in committees, although the vote in plenary is prohibited.

The opinion of the PLDO should be reviewed by the Joint Commission (CMO) on Wednesday. The session is scheduled for 10 am

(Idiana Tomazelli)

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