The possible overthrow of the decree that raised the IOF on credit, exchange and insurance operations may oblige the federal government to expand the freezing of discretionary expenses, directly impacting about $ 12 billion in parliamentary amendments. The projection is from technicians of the budget execution board, according to information confirmed by the newspaper S.Paulo Folha.
The measure is seen as crucial to guarantee the expected R $ 20.5 billion with the tax increase, which are part of the economic team’s strategy to meet the zero tax deficit target in 2025. Last week, which includes between R $ 7.5 billion and R $ 7.8 billion in amendments – a figure that could significantly rise if the decree is overturned.
The opposition, led by Senator Rogério Marinho (PL-RN),, with the support of parliamentarians such as Deputy André Fernandes (PL-CE). The pocket basis has criticized tax adjustment via tax increases and points to the decree as a sign of “budget irresponsibility” of the government.
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The rules of the Budgetary Guidelines Law (LDO) allow the proportional freezing of amendments when there is a need to contingent on other discretionary expenses. With this, without extra collection via IOF, the total frozen can jump from R $ 31.3 billion to R $ 51.8 billion, according to preliminary calculations of the Ministry of Planning.
During the announcement of the Budgetary Budget Assessment Report, the Federal Budget Secretary, Clayton Montes, had already estimated that the amount replied on amendments would be at home of R $ 7.5 billion, a number that could double with the loss of the revenue source created by the decree.
The criticism of the new tax also came from the mayor, Hugo Motta (Republicans-PB), who accused the executive of transferring the tax burden to the legislature: “Brazil no longer needs tax. It needs less waste. The executive cannot spend without brake and then pass the steering wheel to hold congress,” he said.
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Given the negative repercussion, the government announced a partial review of the decree, reducing the impact by about R $ 1.4 billion, less than 10% of the original collection forecast. Still, the Planalto and the economic team gathered on Monday (26) to define the next compensation and political negotiation strategies.
