Planalto releases R$7 billion in amendments; Congress demands more to vote on package

The government of President Luiz Inácio Lula da Silva (PT) paid R$7.1 billion in parliamentary amendments in just two days to try to unlock the spending cut package in the National Congress. The appeals were suspended and were released after a decision by the Federal Supreme Court (STF).

With the transfer, the government hopes to vote this week on at least two projects that involve the fiscal package and that reduce the minimum wage gain, change the rules for access to Bolsa Família and the Continuous Payment Benefit (BPC) and activate triggers for the fiscal framework to contain expenses.

The package also has a third proposal, the Proposed Amendment to the Constitution (PEC), which changes the salary bonus, the National Basic Education Development Fund (Fundeb) and the rule that obliges the government to execute the Budget approved by Congress. This should be until 2025, according to current negotiations.

The Executive also expects to vote this week on the Budget Guidelines Law (LDO), which authorizes the government to spend every penny of the Union’s cash, and the Annual Budget Law (LOA), which determines where the money goes. Congress, however, puts pressure on the Planalto Palace and wants more. The Mixed Budget Committee (CMO) scheduled the analysis of the LDO for this Tuesday, 17th. There are still doubts, however, about the vote on the LOA.

Taxes

The amendments paid for by the government were released on Thursday, 12th, and on Friday, 13th. The resources include individual amendments (indicated by each deputy and senator in the Budget for their electoral strongholds) and bench amendments (which include the entire of parliamentarians from each State). These amendments are mandatory, that is, the government is obliged to release them as indicated by congressmen.

Inside the cake, there are R$3.2 billion in Pix amendments, a mechanism revealed by Estadão, which consists of transfers to states and municipalities that are free to use and difficult to monitor. The Supreme Court demanded that there be transparency from now on, but made an exception for payments in 2024. In practice, the money fell without society knowing exactly what will be done with the funds.

Mayors will have until December 31st to present a work plan explaining what they will do with the transfer of the Pix amendments. The federal government, in turn, will have until the beginning of February to evaluate these plans and may even reject the proposals, but the money is already in the account and may have already been spent.

In addition to the mandatory amendments, the government released an additional R$1.3 billion in funds from the Ministry of Health for hospitals and specialized clinics. The release occurred directly by the Executive Branch, with money controlled by the department. The expectation in Congress is that this amount will also be added to the negotiations to vote on the Planalto agenda in the final stretch of the year.

Heiresses

In Congress, however, the climate is still one of distrust. Payment of the amendments paves the way for a vote on the package this week, but parliamentarians want more. The Lula government has not yet paid for the commission amendments, inherited from the secret budget, revealed by the Estadãowith the exception of some specific projects that were already underway and that were not blocked by the STF.

There are R$8 billion in commission amendments that have not yet been paid this year. Within Congress, the money is controlled by the president of the Chamber, Arthur Lira (PP-AL), and by senator Davi Alcolumbre (União Brasil-AP). Just like in the secret budget, the name of the real parliamentarians who benefited is hidden. The Supreme Court’s determination and the government’s decision is to pay only those amendments that have their sponsors identified and disclosed.

Behind the scenes, political organizers at Palácio do Planalto warned that the government intends to pay for the commission amendments only at the end of the year, after the end of the Legislative’s work, next Friday, the 20th. The warning bothered congressmen. Deputies and senators began sending letters to the government identifying the amendments they sponsored and awaiting release before voting on the fiscal package.

Lira promised the government that she will try to vote on the package in the Chamber this week. Deputies from the lower clergy, however, are dissatisfied with the stance of the President of the House, as shown by Estadão. Lira has been negotiating the agenda directly with the government and voting on some proposals at short notice, without discussion in the plenary and without parliamentarians knowing exactly what they are deliberating.

Suspension

Dissatisfaction with Lira increased when the president of the Chamber suspended the functioning of the House’s committees to give priority to the plenary. The commissions could meet during this period to decide the fate of the amendments blocked by the government. With the maneuver, the government will be able to pay the resources by “skipping” the commissions and negotiating directly with the deputies under Lira’s leadership.

There is still a problem to be resolved. The Supreme Court ordered the commissions to meet to vote on the allocation of the amendments – which cities will benefit and which parliamentarians will be supported. The government used a loophole in Minister Flávio Dino’s decision on December 2 to negotiate the money individually with parliamentarians. In the Executive Branch, employees fear authorizing payments and being held responsible in the future.