President of the House, Arthur Lira (PP-AL), will meet with party leaders on Tuesday (Dec 3) to define the rite of texts
Party leaders want to speed up the analysis of the president’s government’s spending cut proposals Luiz Inácio Lula da Silva (PT) must be analyzed quickly, according to the Poder360. The congressmen’s idea is that this be done before the approval of the LDO (Budget Guidelines Law) and the LOA (Annual Budget Law) of 2025.
On Friday (Nov 29), a PLP (Complementary Law Project) and a PL (Law Project) with the spending review package to the Legislature – without the proposal for IR (Income Tax) exemption for those who earn up to R$5,000.
The texts are signed by the leader of the Government in the Chamber, (PT-CE). They authorize blocking parliamentary amendments, reviewing the BPC (Continuous Payment Benefit) and Bolsa Família, in addition to establishing limits for the growth of salaries and social security benefits within the fiscal framework.
It is expected that deputies will approve the urgent texts this week, so that the proposals can go directly to the plenary, without going through the House committees.
The President of the Chamber, (PP-AL), will meet with party leaders on Tuesday (Dec 3) to define the rite of texts.
A PEC (Proposed Amendment to the Constitution) must still be sent to Congress. The text needs a more significant vote in the Chamber, compared to the PL and PLP.
A proposal of this type needs 308 votes in two rounds of analysis, while a PLP is approved with at least 257 of the 513 deputies, and a PL requires a simple majority of those present at the session.
INCOME TAX EXEMPTION
The income tax exemption for those earning up to R$5,000 should remain until 2025. Lira and (PSD-MG), president of the Senate, believe that this is not the ideal time.
The Minister of Finance, said that it will compensate for the IR exemption by increasing taxation for incomes of more than R$50,000 per month. The measure was received with trepidation in Congress.
TAX PACKAGE
The federal government detailed on Thursday (Nov 28) the public spending review package.
The measures are not immediate and may undergo changesbecause they still need Congressional approval. They should only come into effect from 2025. Understand what does Lula’s team will try to score.
Read more details about the measures designed by the government.
The central objective of the package is to balance public accounts and meet fiscal targets. The government wants spending to equal revenues in 2025 (a the deficit is zero). In the following years, the target is to end up with accounts in the black. In practice, it is necessary to increase revenue and reduce expenses. Little was done on the side of the 2nd option, even with Lula 3 almost halfway through.
