Rapporteur predicts vote on the fiscal framework this Tuesday after adjusting the 2024 spending rule

The rapporteur for the fiscal framework in the House, Deputy Claudio Cajado (PP-BA), predicted that the project will be approved this Tuesday in the plenary of the House, stating that there is agreement between parties to vote on the text after a new change in the rule of spending for 2024.

After a meeting with the mayor, Arthur Lira (PP-AL), and leaders, Cajado stated that his report will provide for a “middle ground” between the government’s original proposal and its opinion.

The proposal formally entered the voting agenda of the plenary of the House this Tuesday.

The government had proposed that, starting in 2024, federal spending would grow by 70% of the increase in revenue, with a margin of 0.6% to 2.5% of real gain per year. The rapporteur had changed this rule in his opinion, defining that expenditures in 2024 would grow by a ceiling of 2.5%, regardless of the collection behavior, which generated criticism from market analysts.

Now, according to Cajado, there will be a middle ground between the opinion and the original text, which had an estimate made by the government of a real increase of 1.12% in expenses for 2024. According to the deputy, if there is an increase in revenue, it will be calculated the difference between this level and the ceiling of 2.5%, respecting the limit of 70%.

“It was a middle ground to undo that misunderstanding that the report was putting 80 billion reais (in extra expenses)”, he said.

The rapporteur highlighted that he promoted other adjustments to the text of the framework, mainly in terms of wording.

A point that was the target of criticism from parliamentarians, government transfers to the Fund for the Maintenance and Development of Basic Education and the Valuation of Education Professionals (Fundeb) will be kept within the expenditure ceiling, according to him.

“The greater meaning of the project is preserved,” he said. “I am going to write this text now, present it to the plenary and it seems to me that we are going to vote today”, she said.