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2022 Budget: payroll exemption generates a new clash between government and Congress

The estimated amount of government spending in 2022 — provided for in the budget law approved by the National Congress this week — has raised doubts from the economic team, as determined by the policy analyst at CNN Thais Arbex.

According to the analyst, government technicians have raised the hypothesis that the value is underestimated. One of the “holes” in this account refers to the extension of the payroll exemption.

According to the Ministry of Economy’s calculations, it would be around R$ 5.8 billion that would not be foreseen in the 2022 Budget for the cost of this tax relief project, which benefits 17 sectors of the economy.

This issue has generated a tough debate between lawmakers and the government, according to people very close to Minister Paulo Guedes and members of Congress heard by Arbex.

On the one hand, the economic team says that Congress did not foresee this expense. On the other hand, Congress says that it is the economic team that is trying to find an excuse not to extend the exemption.

The budget law still depends on an in-person sanction. Right now, there are people within the economic team saying that the only path is President Jair Bolsonaro’s veto. In Congress, they are saying that if the veto comes, it will be overturned.

Reference: CNN Brasil

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