Congress overthrows Lula’s veto and resumes correction of the party fund by the IPCA

by Andrea
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The National Congress overthrew, in a joint session on Tuesday (17), the veto of President Luiz Inacio Lula da Silva to the excerpt of the 2025 Budgetary Guidelines Law (LDO) that provides that the appropriations of the party fund correspond to the value of the 2016 budget law and are corrected by the accumulated variation of the Broad National Consumer Price Index (IPCA).

Upon vetoing the stretch, the federal government had claimed that the proposition “contradicts the public interest, as it increases the amount of the party fund and compresses the amount of other expenses of the Electoral Justice.”

According to presidential message, “the legislative proposition is not consistent with the sustainable tax regime, which has in its genesis the adoption of parameters for the control of the annual growth of the expense, based on the behavior of inflation and the actual growth of the immediately preceding period.”

Congress overthrows Lula's veto and resumes correction of the party fund by the IPCA

The government also argued that the binding of party fund’s expenses to the actual growth of revenue from previous years results in the growth of corresponding expenses “at the level greater than the growth of primary expenses limits.”

Other excerpts from the LDO that had been vetoed by Lula and are now valid by decision of Congress are related to permission to support additional resources, including through amendments, to complete works and engineering services that have been stopped for over a year and have lagged budgets, even if the initially planned resources have already been fully transferred.

One of the recovered items establishes that, in exceptional cases of withdrawal of the original creditor or contractual termination related to non -prosecuted remains (including those from 2019 to 2023), it is possible to settle these remains in favor of a different lender, “provided there is formal justification, advantage and interest of public administration, respecting the relevant laws and without prejudice to the sanctions to the dental creditor”.

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The other determines that if there are no more companies classified in the bidding process, or if they refuse to assume the work or service, or if the price registration minutes overcome, the Public Administration may use remains to be processed to make a new bid, provided that the original object of the work or service is maintained.

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