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BRASILIA – The National Congress and the economic area of the government reached an understanding of the 2021 Budget, according to the Minister of the Government Secretariat, Flávia Arruda. He told GLOBO that “the political agreement has been closed,” although the exact amount that will be cut to settle accounts has not yet been defined.
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Despite the minister’s speech, members of the economic team continue to say that there are uncertainties. The evaluation is that there is an understanding about keeping the budget proposal within the tax rules, but it is not yet defined how to achieve this result.
Throughout this Saturday, there were conversations between members of the economic team, Flávia Arruda, the presidents of the Chamber of Deputies and the Senate, Arthur Lira (PP-AL) and Rodrigo Pacheco (DEM-MG), and the Budget Rapporteur , Márcio. Bittar (MDB-AC).
According to people who followed the negotiation, Congress agreed to cut at least R $ 13 billion in amendments.
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In the team of the Minister of Economy, Paulo Guedes, the diagnosis continues to be that it is necessary to correct the Budget through vetoes that guarantee that the projection of mandatory expenditures is considered realistic by the control bodies.
According to a team source, this proposal foresees that, after the veto, part of the amendments – approximately R $ 15 billion – will be returned to Congress through a bill. This option, in the assessment of the legal area of the ministry, would be the best from a legal point of view.
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Parliamentarians, however, prefer the opposite: to give in in part to the amendments and to sanction the Budget without vetoes, only with correction through bills.
Given the lack of clarity, the expectation is that the talks still have to evolve in the coming days, said an interlocutor accompanying the negotiations.
Bittar sent a letter this week committing to cut R $ 10 billion in “rapporteur’s amendments”, but the economic team demands a cut of around R $ 18 billion. The impasse caused the leaders of Congress to disagree with the Minister of Economy, Paulo Guedes.
The minister says that the exact amount will continue to depend on technical studies and that it is not yet known whether the cut will be made through a veto by President Jair Bolsonaro or a subsequent adjustment by Congress. The terms of the political agreement will be defined in more detail next week.
