Alesp concludes vote on Doria’s fiscal adjustment and eliminates the proposal for the extinction of four public companies from the final text | Saint Paul

With the end of the rite of approval, the document now returns to the Alesp Committee of Constitution and Justice and Drafting (CCJR), so that the final version of the text is consolidated and then sent to the governor of São Paulo for approval. .

To approve the adjustment and win votes, the proposal for the extinction of 4 public companies was eliminated from the text: Oncocentro Foundation (Fosp), Popular Remedy Foundation (Furp), Institute of Social Medicine and Criminology of São Paulo (Imesc) and the Institute Foundation Land of the State of São Paulo (Itesp) (look down).

The state deputies also eliminated from the final text the points that led to an increase in the Tax on Mortality and Donations Transmission (ITCMD), in addition to also extinguishing the part of the obligation to withdraw the budget surplus from state universities and the Foundation of Support for the Research of the State of São Paulo (Fapesp) of 2019, which would go to the single account of the Treasury of SP Now, these leftovers will continue with the entities, according to the wording of the law approved by the parliamentarians.

The São Paulo government maintains that the fiscal adjustment is necessary to contain a gap of R $ 10.4 billion in the 2021 budget. The proposal increases taxes and extinguishes public bodies, authorizing the dismissal of 5,600 officials.

The target of criticism from professors and the scientific community, this part of the proposal had already been modified, since it had previously been planned to remove this box from 2020 and had been restricted to 2019.

See the changes made to the government’s fiscal adjustment to get approval:

1. Business: Withdrawal, from the project, of 4 of the 10 companies and agencies that would become extinct and that, now, will no longer be: Oncocentro Foundation (Fosp), Popular Remedy Foundation (Furp), São Paulo Institute of Social Medicine and Criminology (Imesc ) and the São Paulo State Land Institute Foundation (Itesp).
   See list of companies extinguished by the project, including the Housing and Urban Development Company (CDHU) and the São Paulo Metropolitan Urban Transport Company (EMTU).
2. Mortality and Donations Transmission Tax (ITCMD): a) removes the prohibition of payment in installments within 12 months and; b) withdrawal of the obligation to pay additional tax in the case of donation with reserve of usufruct (when the asset is donated but the donor remains alive or using the asset until death).
3. PM and Fire Department Fund: Withdrawn from the text the government’s proposal to use the money from these agencies, which would also be destined to the single Treasury account.
4. Funds from universities and Fapesp: Total withdrawal of the article that provided for the allocation of surplus funds for research and universities in 2019 and years following the budget of 2021. The proposal was to discount the value of these surpluses from the mandatory annual transfer of 2021 that the government will make to these agencies with based on the ICMS collection.

Procedure with changes

After two unsuccessful attempts to bring the text to discussion in Alesp’s Constitution and Justice and Drafting Committee (CCJR), which could not analyze the text due to lack of a quorum, the president of the Chamber, Cauê Macris (PSDB), who At the beginning of the analysis, three months ago, it did not facilitate the process, it took advantage of a statutory gap and took the text directly to the plenary session for a vote.

During the last three weeks, extraordinary sessions have been held to try to vote on the bill, but none have had a minimum quorum of 48 deputies to start voting. The lack of consensus on the proposal and the attacks on the unconstitutionality of the text and the increase in taxes led to the formation of an unprecedented alliance between antagonistic legends, such as PT, PSL, PSOL and Novo, against the government project.

The text of bill 529/2020 was sent by the Governor, João Dória (PSDB), on August 12 and should have been approved before September 30 to integrate the budget law sent to the Chamber that day by the government , which foresees what will be collected and what can be spent next year.

The project entered into debate last week in the Alesp plenary session urgently, after not being analyzed in the committees, due to lack of a quorum.

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