Growth in court orders will continue to compress expenses, says Funchal

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The Special Secretary for the Treasury and Budget, Bruno Funchal, stated that the growth of precatory it compresses discretionary expenses and showed concern with the current rules for payment in installments. He participated in a public hearing at the Constitution and Justice Committee of the Chamber, this Thursday, 9th, to detail the PEC of the precatório, sent by the government to the Congress.

For Funchal, the first challenge in relation to court orders is to make the expenditure, which has grown each year, compatible with the expenditure ceiling. “Today, the way it is, the growth was so big that it compresses our discretionary expenses too much, much more than we imagined, and this tends to continue happening in the near future”, he pointed out.

Funchal also affirmed that it is necessary to modernize the installment rule that already exists, but it is “innocuous”, according to him. “As relevant as this rule is, today, practically, it is not applied, because the logic is to apply installment payments to court orders whose values ​​are above 15% of the total value. As the total volume of court orders has grown too much, basically this rule does not is used,” he explained.

The current rule provides for the installment of debts with amounts above 15% of the total expenditure on court judgments, with a down payment of 15% and five more installments. The PEC of court orders divides into ten annual installments and allows for installment payment of all court orders above 66 million reais. The proposal allows payment in installments of court orders that add up to more than 2.6% of the Union’s current net revenue.

Another point that needs to be addressed, in Funchal’s view, is the payment of court orders from the Fund for the Maintenance and Development of Elementary Education (Fundef), which “puts a lot of pressure” on the 2022 Budget. states go to court in search of complementation in the transfer.

Of the 89.1 billion reais forecast for court orders for 2022, Fundef’s for Bahia, Pernambuco, Ceará and Amazonas correspond to 15.6 billion reais. The government intends to parcel these debts, even if the PEC dos Precatórios does not pass the Congress.