Congress meets to vote on LDO 2025 and extra credits; know what’s at stake
The National Congress, in a joint session of the Chamber and the Senate, meets this Wednesday (18) to vote on the 2025 Budget Guidelines Law (LDO) project (PLN 3/24) and several projects that open extraordinary credits to the 2024 Budget.
The Mixed Budget Committee approved, on Tuesday (17), the final report of the draft Budget Guidelines Law (LDO) of 2025 (PLN 3/24) with a fiscal target of zero deficit for 2025.
However, 22 types of expenses were included that will not be subject to resource constraints to achieve this goal.
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On Thursday (19), the only item on the agenda is the Annual Budget Law (LOA) of 2025 (PLN 26/24).
Chamber approves basic text of 1st project of the government’s fiscal adjustment package
Approved project limits the granting of tax benefits and personnel expenses in the event of a deficit in public accounts; text now goes to the Senate for analysis
What is LDO
The LDO project is proposed by the President of the Republic and approved by the National Congress.
The text sets goals and priorities for the federal public administration, including expenses for the following financial year.
The LDO guides the preparation of the LOA, provides rules on possible changes to tax legislation and establishes the application policy of official financial development agencies.
What is the LOA
The LOA project is also proposed by the Executive and approved by parliamentarians. It directs government spending and expenses, indicating what the public budget available will be for the next year.
Chamber approves tax reform regulations; text goes to Lula’s sanction
This is the first of the projects that regulate tax reform and refers to taxation on consumption established by Constitutional Amendment 132, of 2023. Deputies still analyze highlights
What are credits
Special credits are a type of authorization for expenses for which there is no specific allocation in the Budget Law. The money for the new expenses comes from the cancellation of other expenses that are foreseen in the Budget.
Supplementary credits are a type of additional credit intended to reinforce the budgetary allocation already existing in the Budget.
Both must be authorized by law and opened by decree of the Executive Branch.
(With Câmara Agency)
