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.

On Thursday (19), the only item on the agenda is the Annual Budget Law (LOA) of 2025 (PLN 26/24).

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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.

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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)