The Chamber of Deputies approved this Tuesday (17) the basic text of a project that limits the granting of tax benefits and personnel expenses in the event of a deficit in public accounts.
The proposal, which received 318 votes in favor and 149 against, establishes “triggers” to contain government spending, including the freezing of parliamentary amendments and the use of national fund balances to reduce public debt.
The project now goes to the Senate for analysis and is the first in the package of fiscal adjustment measures sent by the Ministry of Finance.
Among the main changes, the text provides that, in the event of a primary deficit — when tax revenues fall below government expenses —, new concessions or expansions of tax benefits are prohibited.
In addition, a mechanism will be activated to limit the increase in personnel expenses, which could grow at a maximum of 0.6% per year above inflation until 2030. The rule excludes increases decided by court order and can also be activated in cases of growth of mandatory expenses to the detriment of discretionary ones, such as investments.
The proposal also authorizes the government to use balances from five national funds, which totaled R$45 billion in surplus in 2023, to reduce public debt. Among the funds mentioned are the National Anti-Drug Fund (Funad) and the National Civil Aviation Fund (FNAC).
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Furthermore, in the event of a negative result in the economy, the Executive may freeze up to 15% of parliamentary amendments, resources allocated to projects in the electoral strongholds of deputies and senators, which generated heated debates in the plenary.
With the complete package of fiscal measures, the government estimates savings of R$375 billion by 2030, seeking to align public accounts with the new fiscal framework.
