Tax framework should be delivered to Congress this Tuesday with changes

The government of President Luiz Inacio Lula da Silva (PT) must deliver to the National Congress this Tuesday (18) the proposal for a fiscal framework to replace the spending cap rule. Ministers from the political and economic areas showed alignment in the speech regarding the date.
Prior to submission, the economic team evaluated a change to the final text of the framework. With the aim of showing a greater commitment to the parameters of the new fiscal rule from the outset, the team involved in the preparation of the project decided to include both the framework concepts and the values ​​used for the next four years in the final version of the complementary law.
The text leaves the possibility of changing the parameters by means of ordinary law from the next government. At first, the idea was to define the framework concepts in complementary law and the parameters in ordinary law.
The rule predicts that the real increase in expenditure, above inflation, will be equivalent to 70% of the variation in revenues – ensuring a floor of 0.6% and a ceiling of 2.5% of real growth in expenses per year.
The alteration may, therefore, facilitate changes in fiscal rules after the end of the Lula government. This is because the processing of a supplementary bill requires a special quorum, with an absolute majority of deputies from each legislative house. An ordinary law project, however, requires only a majority of the parliamentarians present in the session.
Upon leaving a meeting with Lula, at the Alvorada Palace, this Monday morning (17), Minister Alexandre Padilha (Institutional Relations) stated that the economic team’s proposal should be delivered by the representative directly to the Senate presidents. and the Chamber of Deputies, respectively Rodrigo Pacheco (PSD-MG) and Arthur Lira (PP-AL).
Lula is going to hold a large meeting in the Planalto with ministers, governors and heads of powers, to discuss measures to combat violence in schools.
The head of Institutional Relations said he hopes that the House will define later this week who will be the rapporteur of the proposal during the course of that legislative House. According to Padilha, Lira would have stated that the fiscal framework could be voted on in 15 days, but he stressed that the government’s forecast is that the measure can be approved, both in the Chamber and in the Senate, by the end of the semester.