Senate Approves Lula Government's "Fiscal Adjustment" Bill
Despite opposition pressure, the Senate approved Lula's government "fiscal adjustment" bill. Read on Gazeta do Povo.
TL;DR
- Senate approved the base text of the Lula government's fiscal adjustment bill with 45 votes for and 31 against.
- The bill proposes cutting tax benefits, regulating high salaries, and contingent spending.
- The Federal District's Constitutional Fund was excluded from fiscal framework limits.
- Spending on innovation and scientific development is now protected from cuts.
- Revenue saved from high salary cuts will be directed to personnel restructuring in other powers, not general investments.
- The bill allows for expenditure limitations and financial movement restrictions to meet fiscal targets.
- It limits real primary spending growth to 2.0% annually when contingency measures are triggered.
- The Federal Revenue Service is authorized to reduce tax debt compensation by taxpayers.
- Tax incentives will have a minimum collection of 20% of the standard rate, with other limitations.
- Up to 40% of the previous year's financial surplus can be detached from specific funds for constitutional obligations.
- Congress will have 120 days to review a bill regulating pay caps and indemnities for public servants.
- Annual transfers from the Union to states and municipalities for pension compensation will be capped at R$3 billion.
- Union transfers for ICMS exemption compensation on exports will be temporarily reduced.