PEC provides that the Executive may reduce or limit, in the preparation and execution of budgetary laws, expenses with the granting of subsidies, grants and benefits of a financial nature
The rapporteur of the Proposed Amendment to the Constitution of the fiscal package, deputy Moses Rodrigues (União-CE), released this Wednesday, 18th, the opinion of the proposal. The PEC provides that the Executive Branch may reduce or limit, in the preparation and execution of budgetary laws, expenses for granting subsidies, grants and benefits of a financial nature, including those relating to compensation and refunds for economic losses, “observing the perfect legal act”.
The government had already announced that it will work towards a budget adjustment within a universe of around R$18 billion in subsidies and grants. The economic team has not yet selected which benefits will be impacted, but the plan is to make a linear reduction of around 10%.
According to the Executive, there are around R$25 billion in annual subsidies and grants. Of this amount, however, around R$7 billion could not be changed for constitutional reasons.
In another section, the PEC defines that a complementary law will provide for conditions and limits for the granting, expansion or extension of incentives or benefits of a tax nature.
