At the end of August, the federal government presented a. The play provides for collection over R $ 6.5 trillion, of which R $ 4.3 trillion for the tax budget, which excludes social security expenses and investments from state companies.
Concentrating on expenses, the proposal provides that 92.4% of primary expenses, those that include the services offered to the population and public investments, are mandatory expenses.
This is one of the main discussions on the budget and fiscal issue in the country today: each interest group wants to ensure the binding of a percentage of the Union budget to its agenda, and thus protecting itself from cuts and contingencies, or from political interests with divergent priorities. In addition to the payment of the debt and salaries of the servers, the government has an obligation on the payment of retirement and benefits, constitutional transfers to states and municipalities. Also in this group includes 15% of Net Current Revenue (RCL) is intended for health, defined by Constitutional Amendment 86 of 2015; And the 18% of net tax revenue is intended for education, a percentage that will reach 23% in the 2027 budget, defined by Constitutional Amendment 108 of 2020, the amendment of the new Fundeb.
Political dispute around public resources is one of the main topics of all democratic governments – autocracies the dispute is limited by the convenience of the head of government and the use of repression.
In this scenario, it is not surprising that Congress has followed the same path as other pressure groups, linking parliamentary amendments to the RCL budget. It is necessarily 2% of the RCL to be destined to individual amendments and 1% of RCL to bench amendments. In electoral years, part of the countertop amendments resources are reversed to the Special Fund Funding Fund (FEFC).
With the flattening of free allocation resources and investments, imposed by budget binding and rules of fiscal responsibility, the legislature’s protagonism grows in the budget. It is worth remembering that today’s investment may result in growth in costing expenses tomorrow. For example, a new hospital will need doctors, nurses, and generate expenses with water and electricity to be at least.
Each new project approved that increases executive expenses, such as maintaining subsidies for economy sectors, or the creation of new aid, it is therefore the reduction of discretion on the budget and the expansion of the importance of parliamentary amendments. Especially when the option is for not increasing the revenue, as in an attempt to overthrow the decree changing the IOF rates.
Thus, the amendments end up being the easiest way to access unpaid resources. There is no need to demonize the participation of the legislature in the budget, it is part of the political game. But it is pressing the establishment of clear rules, supervision and transparency in the use of resources. The performance of the TCU and in this sense is fundamental.
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