In a meeting this Wednesday morning (the 15th), the Minister of Finance, Fernando Haddad, asked Davi Alcolumbre (União-AP), president of the Senate, to resume the discussion of points of the provisional measure (MP) alternative to the increase in the Tax on Financial Operations (IOF) — not voted on by the Chamber of Deputies — which are “incontroversial”.
In a quick conversation with journalists, he mentioned the control of defense insurance registration and the limitation of undue tax compensations.
The MP, which expired last week, was considered crucial to closing the 2026 accounts. In total, the expectation was to raise R$20.9 billion and around R$10 billion in spending cuts. The restriction on compensation was the MP measure with the greatest potential for revenue, R$10 billion, while control of the registration of closed insurance could yield savings of R$1.7 billion next year.
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— One of the things I have defended, I did this with President Hugo (Motta) and President Davi now, is that there is a large part of MP 1303 that was uncontroversial. All part of registration control, compensation discipline. There was no amendment on that. And it’s a big part of MP. More than 70% of the MP is that — said Haddad this Wednesday.
— I presented to him the alternatives we have for what is uncontroversial for us to recover in some way. We will discuss this scenario by the end of the week,” he added.
Government leader
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The government leader in the National Congress, Randolfe Rodrigues, also present at the Haddad and Alcolumbre meeting, also defended the resumption of consensual points, especially spending cuts.
— The priority is to seek to save from the previous provisional measure 1303 at least what is consensual, the part relating to expenses was somewhat consensual. We want to discuss with Congress the alternatives to resolve this part relating to expenditure, which was two thirds of the content of this provisional measure. President Davi made himself available to build a solution — said Randolfe.
The Minister of Finance met with Alcolumbre to discuss next year’s Budget in view of the difficulties imposed by the loss of validity of the MP. This Tuesday, the vote on the budget guidelines bill (PLDO) was postponed in the Mixed Budget Committee (CMO) due to this impasse and also the discussion on the payment of mandatory amendments.
— I wanted this opportunity with President Davi to show him the scenarios of what is still in progress so that we can make compatible the laws that are being considered by the National Congress because they need to make sense among themselves, if we are not going to have difficulty executing next year’s Budget.
Possible scenarios
According to Haddad, the president of the Senate “understood what is at stake” and the various possible scenarios, which will now need to be negotiated with the rest of Congress.
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— He proposed a course of action, but he knows that he also needs cooperation from the Chamber, so that Congress as a whole can make a decision. We need to know what decision Congress will take to ensure the consistency of various laws.
The minister stated that the economic team wants to guarantee the consistency of the laws that affect the Budget.
— One of the scenarios is to keep the Budget as it is. Another scenario is wanting to change what was sent to Congress, knowing that it will have implications for the Budget. What we want to ensure is that, whatever Congress decides, it has to be consistent. There is no point in one law passing in one direction and another law pointing in another. Otherwise, we won’t make the numbers match – he said.
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Discussion
Haddad also stated that it is better to discuss the matter even if this means a greater delay in voting on the PLDO, which, in theory, should have been voted on before the mid-year parliamentary recess.
— Compared to previous years, there is no delay in the PLDO. It’s better to spend an extra week and write a text that makes sense to everyone. Than there is an inconsistency between LDO, Budget and laws that provide for tax and primary spending control. There are laws in progress that guarantee that these expenses are compatible with the budgetary elements — he added.
