Governor of DF states that the measure is “unsustainable” and “harmful”; government wants to limit annual adjustment of the transfer according to the fiscal framework limit
The governor of the Federal District, (MDB), criticized the change in the calculation of the annual adjustment of the FCDF (Constitutional Fund of the Federal District), proposed by the government’s economic team in the fiscal package. 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.
In a note published on his profile on X, the governor said that the fund is important for “the entire political class” and Brazilian from the Federal District. He further stated that the change “it is unsustainable” e “prejudicial” to the federal capital.
— Ibaneis Rocha (@IbaneisOficial)
Based on the proposal that will be presented, if the idea is approved by Congress, the correction of the FCDF would be in accordance with the limits of the so-called fiscal framework, which places a much lower ceiling on the increase, of 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 had R$ . Now, in 2024, the value will already . 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.
Finance Minister Fernando Haddad 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.
A Brazilian population pays 38.08% of Brasília’s Budget spending. 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).
