Finance completed project for new fiscal framework, says Haddad

The Minister of Finance, Fernando Haddad, said this Monday (6th) that his team has finished modeling the new fiscal framework that will replace the spending cap. According to him, the next step will be to discuss the model with the government’s economic area, before presenting it to President Luiz Inácio Lula da Silva. The cat ceiling is the rule currently in force that limits the growth of a large part of the Union’s expenses to the inflation of the previous year. The information was passed on by the minister after meeting with the president. There was an expectation that the new fiscal anchor would be presented to the president today. The government hopes that the new fiscal rule will be able to help control expenses, to stabilize the public debt, without, however, harming investments and other expenditures considered a priority. Haddad also said that the new framework will be presented through a supplementary law to the National Congress. “By the way, it will be a proposal from society, because it will involve a complementary law to be approved by the National Congress. Right now we have our design closed, we are going to present it to the economic area, take it to President Lula and forward it to the National Congress”. This type of law is adopted to regulate specific matters, when expressly determined in the Constitution of the Republic. Unlike ordinary laws, which require a simple majority for approval, complementary laws require an absolute majority of deputies and senators.

Agência Brasil