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Insufficiency of the Golden Rule reaches R $ 146.7 billion

Public Accounts

Government expects additional credit approval of R $ 248 billion to guarantee compliance

The current projection of the Treasury over the Golden Rule - the constitutional provision that does not allow government credit operations to exceed total capital expenditures, which are basically investments - indicates the government's current in 2019 of R $ 146.7 billion, against R $ 110.4 billion estimated last month.

The data includes the National Treasury Result for April , released on Wednesday (29).

Additional Credit

Faced with the difficulties of the public accounts - aggravated by the social security issue - the economic team asked the National Congress in March to open a supplementary loan of R $ 248 billion through Bill 4 of 2019 (PLN 4 / 2019) for compliance with the device this year.

According to Assistant Secretary of the National Treasury, Otávio Ladeira, the amount of R $ 146 billion is the same one sent yesterday to the National Congress by the PLN 4 rapporteur, Deputy Hildo Rocha (MDB-MA), and takes as a base a perspective conservative.

"It is important that this is the only bill to be approved and that we do not have to go back to Congress," said Ladeira.

Scenarios

In order to chart this more conservative scenario for insufficient compliance with the Gold Rule, the National Treasury considered a drop of three indicators compared to last month: investments and investments (- R $ 17 billion); collection (- R $ 17.2 billion); and calculation of amortization with inflation (- R $ 2.1 billion). 

Expenses such as the payment of Continuing Care Benefits (BPC), pensions and pensions paid by the INSS, Bolsa Família and various economic subsidies, as of the second half of the year, are conditional on the approval of the credit by Congress.

Secretary Mansueto added that, in order to avoid prejudice to the programs, this authorization must happen until the middle of next June by the National Congress. 

Otávio Ladeira clarified that if the National Congress opts for a supplementary credit authorization lower than the one requested by the government, it will be necessary to change three legislations: the PLN 4 itself, the Budget Guidelines Law (LDO) and the 2019 Annual Budget Law (LOA) , which has already forecast R $ 248 billion.

The Deputy Secretary further explained that only the initial authorization needs to occur still in June. The rest could happen by the end of the year.

Meet the Golden Rule Panel in the Transparent Treasury.