Decree establishes that ministries can only execute 1/18 of the funds scheduled monthly, thus limiting their spending
The president (PT) issued a decree in order to control government expenses until the budget is officially sanctioned. This measure will allow management to determine the freezing level required to reach the zero deficit fiscal target. The decree states that ministries may only execute 1/18 of the funds scheduled monthly, thus limiting their expenses. The need for blockages in expenses was already an expectation of the government, considering that the approved budget did not include all expected expenses. The publication of the decree occurred in an extra edition of the Federal Official Gazette, and restrictions can total up to R $ 128.4 billion until May and R $ 69.5 billion by November this year.
It is important to highlight that this new regulation does not impact mandatory expenses, such as salaries and social security benefits, but discretionary spending, which are more flexible. The vote on the Annual Budget Law (LOA) to 2025 faced delays due to political conflicts, but was finally passed on Thursday, the 20th. The delay in loa approval had repercussions on the budget bimonthly evaluation report, which will not be disclosed until the law is sanctioned. The Ministry of Planning has already signaled that after the sanction of LOA, a new decree will be issued to organize government spending. Detailed information on budget execution should be presented next week.
Posted by Sarah Paula
*Report produced with the aid of AI
