‎Brazil News

 

Government estimates federal revenue at R $ 4.325 trillion in 2021

Law was sanctioned by the President of the Republic, Jair Bolsonaro - Photo: General Secretariat

 

The Budget Law of 2021, which estimates the Union's revenue at R $ 4.325 trillion and sets the expenditure at an equal amount, was sanctioned by the President of the Republic, Jair Bolsonaro.

 

With the sanction of the definitive budget, the Government will be able to return to make investments and execute discretionary programs, which are those considered not mandatory by law. Until now, the Federal Government had only implemented actions and programs considered mandatory or urgent, within the limits of the provisional budget.

 

“We always have as guidelines: to assist and defend the most vulnerable and to protect the essential elements of the economy, as well as to have a responsible fiscal management”, emphasized the Special Secretary of Finance, of the Ministry of Economy, Waldery Rodrigues.

 

Adjustments

The Ministry of Economy's projections showed the need for a R $ 29 billion rebuild, so it was necessary to open a space in the budget. This was done through an agreement with the National Congress.

 

This restoration was carried out by means of a partial veto, covering R $ 19.8 billion in budget allocations and with an additional blockage of approximately R $ 9 billion, as authorized by the Budgetary Guidelines Law (LDO). The vetoed appropriations are distributed as follows: R $ 10.5 billion will be cut in the rapporteur's amendments, R $ 1.4 billion will be in cuts to amendments by the Legislative Power commission and R $ 7.9 billion in discretionary expenses of the legislator himself Executive power.

 

The appropriation veto is a definite cut in spending. The block allows the amount to be released throughout the year if there is an indication of a new space on the spending ceiling. Blocking is carried out by decree. As for the vetoed amounts, they will be relocated through a new supplementary credit bill, sent to the National Congress.

 

According to the Ministry of Economy, with the veto and the administrative block, the 2021 budget complies with the spending cap rule.

 

Support programs

The sanction will also allow the adoption of actions to support workers and companies to mitigate the effects of Covid-19. Extraordinary credits should be opened for the Emergency Job and Income Maintenance Benefit (BEm) and the National Support Program for Micro and Small Enterprises (Pronampe). R $ 10 billion should be allocated to BEm, and R $ 5 billion to Pronampe.

 

“BEm had a very high effect of guaranteeing job preservation, given the merit of the proposal and given its specificities that are configured as extraordinary credit, this measure will very soon be reissued with all the legal certainty and the response capacity that society needs and demands ”, explained Secretary Waldery Rodrigues.