economy worsens, and government proposes rhombus R $ 96,7 ball Kids 2016

The government will send to Congress next week a project to change the LDO.
24/03/2016 06h38 - Updated 24/03/2016 06h38
Photo: LOOK

The government will send to Congress, until Monday, a project to change the Budget Guidelines Law (LDO) and allow the Union to close the year with a primary deficit 96,7 billion reais. The news comes a day after the government announced a contingency (blocking funds) additional 21,2 billion reais in budget.

The new deficit is 36,45 billion reais higher than announced in February, when the government had announced that he would ask permission to end the year with deficit 60,2 billion reais. The primary deficit is the negative result of the government's accounts before payment of interest payments.

Explaining the measure, Minister of Finance, Nelson Barbosa, He said the drop in revenue caused by the weak performance of the economy justified the goal of the review. “For the government to help the economy to stabilize and make employment and income to recover faster, we are proposing a new fiscal target. We made the decision after checking the increase in expenses in the first quarter and to promote discussions within the government and with parliamentarians”, he explained.

To get to the new result, the project proposes a rebate of up to 120,7 billion reais of the fiscal target for this year, according to Barbosa. Of this total, 82 billion reais correspond to frustration revenue – 40,3 billion reais of revenues administered (taxes administered by the IRS) e 41,7 billion revenue not given real (operations with assets, State of dividends and revenues from public grants).

The 38,7 billion remaining correspond to actual authorization for government spending 3 billion reais in dengue prevention actions, Chikungunya fever and Zika virus and 9 billion reais in works of the Growth Acceleration Program (PAC) which are stalled. The government also will ask for the deduction of up to 3,5 billion reais of defense spending and to 1,95 billion reais of regularization of the Export Support Fund and propose the restoration of the contingency 21,2 billion reais announced on Tuesday.

Originally, the government intended to shoot down 84,2 billion reais the fiscal target, with 72,2 billion reais resulting from frustration revenue – 30,5 billion reais of revenues and administered 41,7 billion revenue not given real. The figures for spending on public health and the CAP were kept.

according to Barbosa, the primary deficit may increase in 6 billion reais depending on the membership of the governors to the proposed renegotiation of the debt of the states and the Federal District with the Union. In this case, the negative result could reach 102,7 billion reais.

The budget approved by Congress late last year establishes a primary surplus target – economy to pay interest on public debt – from 24 billion reais for the Central Government (National treasure, Social Security and Central Bank) for this year. However, the worsening economic crisis and the drop in revenue made it difficult to achieve the target.


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