Public bodies and ministries that had suffered the blockade of R$ 5.7 billion announced at the end of last month gained strength. The Special Secretariat for the Treasury and Budget of the Ministry of Economy published, in an extraordinary edition of the Official Gazette, an ordinance that reallocates R$ 3.3 billion from mandatory expenses to discretionary (non-mandatory). Resources came from re-estimates of mandatory expenditures which had originally been estimated upwards and which were revised downwards as the end of the year approached. According to the Ministry of Economy, values were reorganized within each ministry or agency, each one of them having to allocate these resources internally, according to priorities. The global amount of each ministry has been preserved. In a note, the Special Secretariat for the Treasury and Budget reported that most of the mandatory spending comes from expenses with flow control, a category that includes social programs, whose execution was below expectations. The body informs that the measure, although it alleviates restrictions on the functioning of public services, does not mean de-contingency (release of resources) because the relocation of funds was internal, within each portfolio. According to the Ministry of Economy, the measure will not affect the execution of mandatory expenses because the headings were originally overestimated. According to the ministry, the budget limitations towards the end of the year are being monitored by the economic team, but the fiscal framework, such as the spending ceiling, cannot be disrespected. “The Ministry of Economy reiterates that, in view of the challenging budget and financial execution already reported this year-end, it continues to closely monitor the demands of the various bodies of the Executive Branch and works to meet these claims, always respecting the fiscal framework. The ministry also reinforces that the payments of all mandatory expenses that will actually be carried out until the end of the year are assured”, justified the portfolio. Temporary relief The relocation of mandatory spending to discretionary helps ensure the continuity of public services affected by the extra contingency (block) of R$ 5.7 billion announced on November 22nd. This is because discretionary expenses include expenses such as water, electricity, internet, office supplies, cleaning and security contracts. However, it is still unclear whether the measure is insufficient to cover all the needs of federal agencies. Since the end of November, issuing passports has been suspended due to a lack of R$74.72 billion in funds. Half of the amount, R$ 37.36 billion, was recomposed through the reallocation of resources from the National Fund for Scientific and Technological Development (FNDCT). The remaining half depends on the approval of extraordinary credit (outside the expenditure ceiling) by the National Congress. The ministry most benefited was Health, which had R$ 2.295 billion allocated to discretionary spending. Last week, the government blocked R$ 366 million in funds from universities and federal institutes. but the blockade returned the following day (2). With today’s ordinance, the Ministry of Education will again be able to spend R$ 300 million in discretionary spending, but it is not clear whether all this money will go to higher education or be applied to other areas of the portfolio. Public Security 32.7 Work and Social Security 25 National Civil Aviation Agency 4 Total 3,307
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