President Lula sanctions the 2023 budget bill with a veto

- Article Top Advertisement -

The President of the Republic, Luiz Inácio Lula da Silva, sanctioned the 2023 Annual Budget Law (LOA) project, which estimates the revenue and sets the Union’s expenditure for the 2023 financial year.

Approved by Congress on December 22, the project had until January 20, next Friday, to be sanctioned. The now Law 14,535, published in an extra edition of the Official Diary of the Unionwas sanctioned with the veto of the entire article 9 of chapter 5 of the Law, of Final Provisions.

- Article Inline Advertisement 1-

The sanctioned budget maintains the division of resources approved by parliamentarians for each of the Powers, in addition to the amounts allocated to each area of ​​the Executive.

For the time being, expenses are divided according to the structure of the ministries in the government of former President Jair Bolsonaro, since the creation and separation into new folders only occurred after the approval of the LOA.

- Advertisement -

According to sources from the economic team, the redistribution of funds for the new formatting of the Esplanade should take place in the Budget Programming Decree scheduled for January 31st.

With regard to the veto, it is an accounting adjustment to the legislative proposal that provides that programs classified in the budget law with the source of funds “8444′ would refer to expenses included as a result of the expansion of budget appropriations subject to the new limit for the spending ceiling.

When the Proposed Amendment to the Constitution (PEC) of the Transition was approved, before the budget, expanding the budget outside the spending ceiling, the rapporteur created separate headings to highlight where the resources went.

In justifying the veto, however, the Ministry of Planning and Budget alleges that this “identifier” could not be created and that additional expenditures should normally be classified in the identifier groups ‘1’ and ‘3’ of the budget. The claim is that creating the ‘8’ group would make it difficult to compare with previous budgets.

“However, despite the legislator’s good intentions, the legislative proposal goes against the public interest, as it innovates by creating the ‘8’ resource source group, which would identify the expenses subject to the ceiling that were increased, as a result of the Constitutional Amendment No. 126 of 2022. However, the group of sources of funds does not have the purpose of identifying expenses, since the source is the link between income and expense, and groups types of income with rules of common application. With regard to the annual budget law and its amendments, the source group differentiates whether they are resources for the year, surplus or exceptions to the Golden Rule”, says the justification for the veto, published in the edition of the GIVE.

The sanctioned Law is signed by President Luiz Inácio Lula da Silva, by the Executive Secretary of the Ministry of Finance, Gabriel Galípolo, who is acting Minister; and the Ministers of Management, Esther Dweck, and of Planning, Simone Tebet.

The 2023 Budget Law estimates the Union’s revenue for this year at BRL 5.345 trillion and sets the expenditure at the same amount. The total estimated revenue in the fiscal and social security budgets is R$5.201 trillion.

Of this total, R$2.039 trillion refer to the fiscal budget; BRL 1.152 trillion to the social security budget; R$ 2.010 trillion for refinancing the federal public debt.

Source: CNN Brasil

- Article Bottom Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles