Mixed Commission approves Budget Guidelines Law of 2022 – Prime Time Zone

6

Text must be voted on in the plenary of Congress today; This measure provides for resources to carry out the Census and a minimum wage of R$ 1,147

Marcello Casal Jr./Agência BrasilText indicates goals and priorities for government spending

A Joint Budget Committee (CMO) approved this Thursday, 15, the Budget Guidelines Law (LDO) 2022. The text indicates the goals and priorities for government spending for the next year. The group of deputies and senators approved the measure presented by the rapporteur, deputy Juscelino Filho (DEM-MA). The agenda must be voted on in plenary today. If the measure is not approved before the start of the recess, this Monday, the 18th, the Congress cannot suspend work. Until today, parliamentarians had to present the amendments. In total, 773 were sent seams to the annex, of which 38 from the state bench, 185 from senators, 446 from deputies, in addition to 104 from the various commissions of the two Houses and the National Congress.

The text maintained the federal government’s projection of minimum wage of BRL 1,147, that is, readjusted only by the National Consumer Price Index (INPC) and no real gain. The rapporteur defined as priorities the National Immunization Program (PNI), the agenda for early childhood, the expenses of the Casa Verde e Amarela Program for municipalities with up to 50,000 inhabitants and the expansion of the cancer care network. The report also excluded actions and programs from the 2022 contingency. Demographic Census, which became the target of debates between the Ministry of Economy and Congress after the approval of the 2021 Budget. The rapporteur also excluded public security expenses and digital inclusion projects from the allocation of funds. The rapporteur also increased resources for electoral financing from R$ 2 billion to R$ 5.7 billion.

The text maintained the Executive’s projections for the performance of the economy for the next year. The project submitted by the economic team provided that the Gross Domestic Product (GDP) will be 2.5% between 2022 and 2024. Broad National Consumer Price Index (IPCA), the official indicator of Brazilian inflation, should end next year with an increase of 3.5%. THE Selic, the main instrument of the Central Bank to control inflation, is forecast at 4.7% per year in 2022. The LDO also maintained the indication of the central government’s primary deficit — which includes the Federal Revenue, Central Bank and Treasury accounts National — at approximately R$ 170 billion. The combined accounts of the Federal District, States and municipalities should register a deficit of R$ 2.6 billion. The result leaves Brazil with nine consecutive years with the bills in the red.