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BRASÍLIA – President Jair Bolsonaro vetoed various parts of the 2021 Budget Guidelines Law (LDO) that established expenditures that the government cannot block throughout the year.
Among the expenses that had been protected by Congress, but now lose this protection and are subject to contingency, are those related to the production and availability of vaccines against Covid-19 and actions to combat deforestation and combat violence against women. .
This list also includes expenses related to the fight against poverty, the implementation of actions in the agrarian reform program, support for family farming, indigenous communities and quilombolas. The list continues with expenditures on basic, professional and technological education actions within the scope of the Ministry of Education and programs related to public security actions.
In the case of vaccines against Covid-19, last year the government issued a provisional measure (MP) releasing R $ 20 billion for the purchase of immunizers. This amount, as it is an extraordinary loan, cannot be contingent.
The LDO is prepared every year by the Executive and must be approved by Congress. Set goals and priorities for the annual budget. The sanction of the bill 2021 was carried out on the last day of 2020.
In the message explaining the reasons for the veto, sent to Congress, the government alleges that the proposed items are no longer subject to contingencies and their inclusion “contributes to increasing budget rigidity.” The vetoes will be analyzed by the parliamentarians, who may maintain or overthrow them.
Some of the articles vetoed by Bolsonaro already have mandatory execution determined by the Constitution, such as expenses related to education and health. In other cases, however, this is not the case.
Furthermore, the government has chosen not to veto other items that are also mandatory, but are on the contingency ban list, such as Social Security benefits, wage allowances, and Continuous Pay Benefit (BPC).
On the other hand, Bolsonaro decided to maintain the prohibition of contingency financing for strategic defense programs, such as the acquisition of the Guarani armored vehicle from the Army and the development of a cargo plane.
The contingency mainly occurs when the income of the Union is below what is foreseen in the budget or when some mandatory expenses increase. The objective of the blocking of resources is to meet the goal of the results of the public accounts, which this year is R $ 247 billion.
The evaluation is done every two months. When there is a need for contingency, the government has distributed these blocks among ministries.
Due to the decree of the state of public calamity, there was no need to meet a fiscal goal in 2020 and, therefore, last year, it was not necessary to limit resources in the Budget.
