Government will block another R$ 6.7 billion from the 2022 Budget, says Economy – 07/22/2022 – Market

The government will block another BRL 6.7 billion from the 2022 Budget, the Ministry of Economy said on Friday (22). The contingency must limit the public machine to less than three months before the elections and is made due to the need to comply with the spending ceiling, which prevents the growth of federal expenses above inflation.

President Jair Bolsonaro (PL) earlier complained about the need for a blockade. “It’s hard to work with a budget like that, in a cast. We have this extra cut [que pode ser que] reach almost R$8 billion,” Bolsonaro told reporters in the morning.

He had already signaled that the contingency would be done due to the growth of expenses with judicial sentences, salary bonus and financing for agriculture. These items were also among the reasons for the last block, made in May.

According to the Ministry of Economy, the total need for blocking in 2022 rose by R$2.7 billion between the last two months and the most recent (to R$12.7 billion).

According to the folder, part of the amounts previously blocked were canceled and only R$ 6.7 billion remained frozen.

Economy members say that the cancellation of the blockades made previously resulted from instruments such as bills and ordinances that allowed the use of resources to meet the needs of ministries, especially mandatory expenses.

The verification of accounts provided by the bimonthly report of income and expenses is a requirement of the legislation. The Fiscal Responsibility Law (LRF) determines that, if it is verified, at the end of a two-month period, that the revenue may not support the fulfillment of the results goals of the public accounts for the year, the government must limit the commitment and financial transactions.

However, this year’s blockades are not being made to meet the fiscal target, but the spending cap rule. This is because revenues are expanding, giving the government leeway with the target stipulated in the 2022 Budget Guidelines Law (primary deficit of BRL 170.4 billion).

This week, the government announced that federal revenue had a real increase of 11% in the first half of this year and reached a record level of the historical series started in 1995, at R$ 1.090 trillion, informed the Federal Revenue Service this Thursday (21), in period marked by the normalization of activity after the pandemic and the inflationary effect on taxation.

The rise was strongly influenced by the growth in revenue from the fuel sector, under the impact of the increase in oil prices on the international market generated by the War in Ukraine.

If only the collection managed by the Federal Revenue is considered, which includes the collection of taxes within the competence of the Union, there was a real increase of 9% in the semester. In the period, the collection of the fuel sector jumped 192.54%, giving the greatest absolute contribution (R$ 34.807 billion) to the increase.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

‘One sentence won’t change everything’

About to complete one year at the helm of Carrefour Brasil, Stéphane Maquaire, the group’s …