O President Luiz Inácio Lula da Silva (PT) sanctioned the Budgetary Law on Tuesday (2) with rules for the execution of the budget this year.
However, the president vetoed the provision approved by Congress that established a schedule for the release of funds for earmarks for projects and municipalities chosen by the parliamentarians.
The measure expanded the power of the Legislative over the issue, as there is currently no defined calendar for the execution of this budget.
Historically, governments use this as a bargaining chip in negotiations with Congress. It is common to have a large volume of these transfers on the eve of votes of interest to the Palácio do Planalto.
Lula also vetoed a section of the text introduced by the caucus linked to former President Jair Bolsonaro (PL) that prohibited the government from promoting and financing actions such as land invasions, surgeries on children for sex change, carrying out abortions not provided for by law, and other actions that mobilize the Bolsonaro base.
In another victory for Finance Minister Fernando Haddad, Lula sanctioned the provision for a zero deficit in public accounts in 2024.
The President of Brazil, Luiz Inácio Lula da Silva, took action on Tuesday (2) by signing the Budgetary Law that will establish rules for the execution of the budget throughout this year. However, the President decided to veto the provision approved by Congress, which aimed to schedule the release of funds for earmarked projects and municipalities chosen by parliamentarians. This move caused a significant power shift within the Legislative branch, as up to this point, there was no set calendar for the execution of this budget. The decision inevitably impacts the way the government conducts negotiations with Congress, as historically, these transfers are often used as leverage in discussions and tend to occur in large volumes just before crucial votes.
Moreover, Lula decided to veto a portion of the text that was introduced by the caucus linked to former President Jair Bolsonaro, which sought to prohibit the government from promoting and financing certain controversial actions. These included land invasions, surgeries on children for sex changes, and carrying out abortions not provided for by law. This decision on vetoes signifies an ongoing struggle and political influence between different factions within the Brazilian government.
Notably, Lula also granted a victory for Finance Minister Fernando Haddad by sanctioning the provision for a zero deficit in public accounts in 2024. This particular decision emphasizes the current administration’s commitment to fiscal responsibility and provides insight into the government’s strategic financial planning for the years ahead.
In summary, President Lula’s recent actions have had a profound effect on the management of public funds and the government’s approach to key social and fiscal policies. These measures will undoubtedly shape Brazil’s political and financial landscape for the foreseeable future.
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