LDO was published in the Official Gazette of the Union this Tuesday (31)
This Tuesday (31), the president sanctioned the Budget Guidelines Law (LDO) for the year 2025, which establishes a fiscal target of zero and allows the blocking of funds destined for parliamentary amendments. One of the main changes was the veto of an article that restricted budget blocking to non-binding amendments only, which now allows all parliamentary funds to be blocked to meet the spending limit.
The decision to veto this limitation was based on an interpretation of the which states that the rules that apply to the Executive’s discretionary expenses also extend to funds allocated to the Legislature. Furthermore, Lula chose to veto provisions that ensured the execution of parliamentary amendments within constitutional limits and a section that allowed the increase of the party fund beyond the spending ceiling established by the fiscal framework. Among the innovations brought by the new LDO, the possibility for the Executive Branch to make adjustments to the annexes of the Annual Budget Law up to 30 days after the publication of the reasons for the vetoes stands out. This measure aims to provide greater flexibility in budget management, allowing the government to adapt to changes in economic circumstances.
The new legislation reflects the government’s commitment to fiscal responsibility and the pursuit of economic stability. “The new legislation aims to modernize budget management, by aiming for greater predictability and alignment between fiscal goals and public budget needs. With the sanction, the Federal Government reaffirms its commitment to fiscal responsibility and economic stability, considered essential for sustainable growth and the guarantee of priority public policies”, highlighted the presidency in a statement released to the press.
*Report produced with the help of AI
Posted by Victor Oliveira
