Budget report will include congressional earmarks for infrastructure program
The rapporteur of the 2024 Budget Guidelines Law (LDO), Deputy Danilo Forte, confirmed that he will include a line in his opinion to allow lawmakers to include congressional earmarks to the new Growth Acceleration Program (PAC) unveiled last week by the Lula administration. Mr. Forte told Valor that without the measure, the package of infrastructure works does not fit into the spending forecast for next year.According to the lawmaker, the inclusion of the program in the budget without earmarks requires the government to raise the revenues needed to meet the zero-deficit target for 2024, which he considers "very difficult." Therefore, he also advocates that the target be reviewed."The PAC does not fit in the budget the size it is today, unless the government succeeds in reducing the deficit to zero and there is economic growth," he said.Mr. Forte said he would not write "a budget bill that gives room for fiction." He pointed out that he does not want to be the "bearer of bad news," but he reflected that the more real his report is, "the more security the country will have."The ability of deputies and senators to direct funds to the new PAC was defended by the Lula administration. On Friday, at the launch of the program in Rio de Janeiro, Chief of Staff Rui Costa said that such earmarks should happen. The issue had already been raised when a preview of the plan was presented to congressional leaders days before the ceremony.The new PAC provides for R$371 billion in public investment over four years. Although congressional earmarks are also part of the budget, the allocation of funds indicated by lawmakers has the potential to reduce the commitment of ministries’ budgets.In defending the inclusion of the item, Mr. Forte makes a nod to the government. He also wants the LDO to include a timeline for implementing the changes. Today, these expenditures are mandatory, but the Executive branch has the power to control the flow of releases throughout the year.Mr. Forte said that his biggest concern is how to include PAC in next year’s budget. The rapporteur met on Wednesday with Finance Minister Fernando Haddad and told him that he believes that "it is very difficult for the government to meet the zero-deficit target" in 2024.The day before, the government had sent a message to Congress asking for changes to the LDO so that up to R$5 billion to be used in the new PAC would be subtracted from next year’s fiscal target.According to Mr. Forte, Mr...
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