Senate will analyze a bill that changes rules on transfers from the Union to the states

The Senate must analyze the Complementary Bill (PLP) 123/2021, which excludes resources from parliamentary bench amendments from the spending ceiling imposed on states in fiscal crisis.

The proposal benefits states participating in the Tax Recovery Plan or renegotiated installments of debts with the Union. Among the states that have joined the Tax Recovery Regime that may benefit are Goiás, Minas Gerais , Rio de Janeiro and Rio Grande do Sul.

Authored by the deputy Lucas Vergílio (Solidariedade-GO), the text was approved by the Chamber by 372 votes to 13, on the 30th, and sent to the Senate.

The budget bill for 2022 (PLN 19/ 21), sent by the Executive Branch, reserves R$ 5.7 billion for bench amendments, which are mandatory. If approved by Congress, PLP 123/21 will allow states to deduct from spending ceilings transfers tied to specific expenditures, such as fund-to-fund transfers; the Contribution for Intervention in the Economic Domain (Cide); the education salary; and those related to the National Program for Access to Technical Education and Employment (Pronatec).

The Deputy Gil Cutrim (Republicans-MA) presented the report of deputy Christino Aureo (PP-RJ) who recommended the approval of the original text. “The federative entities cannot be harmed by incurring expenses with resources from transfers from the Union with linked investments or with resources from budget amendments”, argued Gil Cutrim.

Breaks

O deputy Paulo Ganime (Novo-RJ) fears that the bill will affect the fiscal balance and open loopholes for all transfer funds from the Union are excluded. “It is about bringing down the spending ceiling at the state level, in an indirect way. Rio de Janeiro has already gone through a fiscal crisis. This project cannot go forward”, he warned.

The president of the Chamber of Deputies, Arthur Lira (PP-AL), agreed with the concern, but considered that there was no risk in the ceiling of governors’ expenditures. “Some extraordinary resources will not impact the spending ceiling. The Ministry of Economy itself does not see any problems in the text, as long as there are no changes”, he pondered.

The deputy Lucas Vergílio (Solidariedade-GO) clarified that constitutional transfers were not included, but only voluntary transfers. “This will make room for states in fiscal crisis to recover their accounts”, he hopes.

With information from the Agency News Chamber

Senate Agency (Reproduction authorized upon citation of the Senado Agency)

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