Annual adjustment of the federal transfer is made according to the growth in revenue and would become subject to the rule of the fiscal framework
One of the expense containment measures that the president’s government (PT) will propose is to change the way in which the value of the FCDF (Constitutional Fund of the Federal District) is corrected. Since 2003, when it began receiving resources from the federal government, the fund has been adjusted annually according to the increase in the Union’s tax revenues.
Based on the proposal that will be presented, if the idea is approved by Congress, the correction would be in accordance with the limits of the so-called fiscal framework, which sets a much lower ceiling for increases – up to 2.5%.
In 2023, when the fiscal framework was created, the government tried to include the adequacy of the DF fund, but was defeated in Congress. Now, the proposal will be resubmitted.
In 2020, the FCDF. Now, in 2024, the . In 2025, the fund could reach R$25 billion if the change is not approved by Congress. This money is funded by all tax payers in Brazil to cover, among other things, security, health and education expenses in Brasília.
The Minister of Finance, , specifically mentioned the Constitutional Fund of the Federal District in a meeting with party leaders to be a target of what he calls cost containment in the coming years. This proposal depends on the approval of a constitutional amendment that will be sent to Congress in the coming days and could be approved by the end of December.
The meeting was held at Palácio do Planalto shortly before his speech on national radio and television. He announced the main points of the spending review package and fiscal measures that will be implemented with the aim of reaching government coffers in 2025 and 2026.
The Brazilian population pays 38.08% of Brasília’s budget expenses. This is because of the Constitutional Fund of the Federal District. The expenses stipulated by the fund for 2024 total R$23.38 billion. The total Budget approved for the Federal District this year is R$61.10 billion, according to the Brasília government. FCDF money goes to education (R$10.50 billion), health (R$8.50 billion) and security (R$10 billion).
