What is the fiscal framework?
Posted: Thu Feb 20, 2025 4:41 am
The new set of rules responsible for regulating Brazil's public finances is about to be submitted for consideration by the National Congress. These measures configure the fiscal framework, or the "set of rules that will define how the government manages its expenses" .
Essential to ensuring a balanced public budget , the proposal for a new fiscal framework has been discussed by the current government since the beginning of its term.
Since his election campaign, President Lula (PT) has been signaling that the current spending cap rules were outdated. He even went so far as to say that public spending excluded the needs of the low-income population.
At the end of 2022, even before the new government took usa mobile database office, Congress approved the Proposed Constitutional Amendment that determined a new limit for the spending cap. This proposal became known as the Transition PEC .
The Transition PEC was created so that it would be possible to change the rules of the 2023 budget proposal . Without this constitutional change, it would not be possible to maintain the amount of R$600.00 allocated to Bolsa FamÃlia, nor to carry out the readjustment of the minimum wage.
According to the approved text of the PEC, the government would have to present, through a complementary bill, a new set of rules to replace the current tax regulations. The deadline for presenting the measures was set for August 31, 2023.
Since taking office, the Minister of Finance, Fernando Haddad (PT), and Simone Tebet (MDB), Minister of Planning, have been responsible for taking on the process that designs the new framework .
The first version of the new set of fiscal rules has already been presented and validated by President Lula. According to Haddad, the text is now undergoing technical revisions before being presented to parliamentarians.
Essential to ensuring a balanced public budget , the proposal for a new fiscal framework has been discussed by the current government since the beginning of its term.
Since his election campaign, President Lula (PT) has been signaling that the current spending cap rules were outdated. He even went so far as to say that public spending excluded the needs of the low-income population.
At the end of 2022, even before the new government took usa mobile database office, Congress approved the Proposed Constitutional Amendment that determined a new limit for the spending cap. This proposal became known as the Transition PEC .
The Transition PEC was created so that it would be possible to change the rules of the 2023 budget proposal . Without this constitutional change, it would not be possible to maintain the amount of R$600.00 allocated to Bolsa FamÃlia, nor to carry out the readjustment of the minimum wage.
According to the approved text of the PEC, the government would have to present, through a complementary bill, a new set of rules to replace the current tax regulations. The deadline for presenting the measures was set for August 31, 2023.
Since taking office, the Minister of Finance, Fernando Haddad (PT), and Simone Tebet (MDB), Minister of Planning, have been responsible for taking on the process that designs the new framework .
The first version of the new set of fiscal rules has already been presented and validated by President Lula. According to Haddad, the text is now undergoing technical revisions before being presented to parliamentarians.