Two days after impeachment, Temer government sanctions law authorizing fiscal pedaling

Friday, September 2, 2016
Info Source: 
Redação São Paulo (SP)

Posted on Friday, the law eases the budget reassignment, the main justification the removal of Dilma

Unelected President Temer and president of the House of Deputies, Rodrigo Maia

The unelected government of Michel Temer, represented by its interim president of the House of Deputies, Rodrigo Maia (DEM / RJ), signed and published in the Official Gazette on Friday (September 2) Law 13,332 / 2016, which loosens the rules for opening additional credits without authorization from Congress.

Roughly speaking, the letter authorizes the fiscal pedaling that was the  justification for Rousseff’s removal by the Senate on Wednesday (August 31).

The law stems from the Project of the National Congress (PLN) 3/16 and was approved on August 23. The text authorizes the government to increase, by decree, up to 20% of the amount of expenditures provided for in the 2016 budget by the cancellation of 20% of the value of other expenses. Until then, the reallocation was restricted to 10% of the canceled expense.

"It is allowed to open additional credits, restricted to the constant values of this Law, excluding changes resulting from additional opened or reopened credits, from this to the changes introduced in the budget program that are compatible with achieving the primary surplus target for the financial year 2016," detailed in article 4 of Law.

The change in the budget law also allows the government to cancel resources included by collective amendments of the National Congress and direct resources to other areas of interest, except for the mandatory implementation of amendments provided for in the Budget Guidelines Law (LDO).

According to Agência Senado, the unelected government claims that the change in the law makes more flexible budget management, and may be even the relocation expenses for Growth Acceleration Program (PAC).

According to the legal arguments used to impeach, Dilma was removed from her term as president just for using additional credits without the permission of Congress.

Edition: Camila Rodrigues da Silva