In an attempt to alleviate the pressure caused by the growth in mandatory expenses, the government will send a proposal to the National Congress to extend the Untying of Union Revenues (DRU) until 2032.
Created in the 1990s, under the name Social Emergency Fund, the DRU allows the Executive Branch to reallocate up to 20% of the revenues “stamped” for health, education and Social Security to other areas.
This does not save resources, but it gives the government more leeway to use mandatory expenses in other sectors, making budget management more flexible.
The end of the DRU period, however, is scheduled for December 31st. This is a constitutional amendment. Therefore, a PEC — with the approval of three-fifths of the Chamber and the Senate — is needed to extend it.
The government’s proposal, which is now being sent, provides for the extension of the DRU until 2032.
