Supreme Court overturns secret budget in defeat for Congress
With a narrow score of 6 votes to 5, the Federal Supreme Court (STF) suspended on Monday the model of distribution of rapporteur’s amendments, technically called RP-9, which had been practiced by the National Congress and that, due to the lack of transparency, became known as "secret budget." With this decision, the Executive branch gains more control over the Budget.On Sunday night, in another court decision favorable to the elected government, justice Gilmar Mendes granted an injunction to leave out of the spending cap the amount necessary to guarantee the R$600 to the beneficiaries of the cash-transfer program Bolsa Família in 2023. This reduces the dependence of the future government on the approval of the so-called Transition PEC (proposal to amend the Constitution), which is in the Chamber of Deputies and flexibilizes the constitutional spending limit.The overturning of the "secret budget" buries the main instrument of political bargaining of Arthur Lira, the Chamber of Deputies Speaker, who is seeking his reappointment to the post. In recent years, he and President Jair Bolsonaro have used the mechanism as a "bargaining chip" to try to expand the government’s allied base in Congress.To add to this scenario, Justice Gilmar Mendes’ injunction guaranteed that the new government will pay R$600 even if the Transition PEC is not approved in the Chamber of Deputies. The decision also allows Mr. Lula da Silva to pay, also outside the spending cap, R$150 per child up to six years old (a campaign promise), as long as there is open fiscal space resulting from unpaid court-order payments by the federal government.The secret budget trial at the STF, considered one of the most important of the year, took four sessions. In the end, the vote of the rapporteur, Justice Rosa Weber, president of the court, prevailed. According to her, amendments can only be used to correct technical errors in the budget or to restore canceled appropriations, not to create new expenses.Justices Edson Fachin, Luís Roberto Barroso, Luiz Fux, Cármen Lúcia, and Ricardo Lewandowski followed the president of the court. Justices André Mendonça, Nunes Marques, Alexandre de Moraes, Dias Toffoli, and Gilmar Mendes dissented.With the Court’s decision, the rapporteur’s amendments can no longer be aimed at requests from deputies, senators, or "outside users." As for the funds received by public agencies in previous years, it will be up to the ministers to guide their execution...
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