The general-report on the 2009 Budget, released on Monday (15) by Senator Delcídio Amaral (PT-MS), previews a cutback of R$1.2 billion in the forecast investments in the budgeting bill, which had been initially submitted by the Executive (PLN38/98). Because of the global financial crisis, the initial amount of the Budget had to be reduced in R$ 6 billion, as a consequence of the forecast drop in tax collection.

"It is the broadest cutback in appropriation in the history of National Congress”, affirms the senator, reminding that usually the Legislative increases the incomes, and that, even so, the collection surpasses the approved bill. The 2009Budget, according to the report, will be R$ 1.658 trillion, including the refinancing of public debt.

Investments x funding
The cutback in investments, according to the senator, preserves the Growth Acceleration Program (PAC) and the Pilot Project on Investments (PPI), which are classified as “anti-cyclic policies”, in the midst of the crisis. 82 new actions were also included into the 444 of PPI. The cutbacks were made in works that had a budgeting commitment that was lower than 50%, from January to November of this year.

Most of the cutbacks were concentrated in funding expenses. Among those cutbacks in funding, the rapporteur affirms that he preserved the best he could health, education, defense and public safety. In all cases, though, the goal was to maintain at least the authorized total for 2008.

Payroll expenses
There was a reduction of R$ 402,600,000 in payroll expenses. However, according to Delcídio Amaral, this fact will not affect the contracting/hiring of personnel that had already been forecast for 2009.

The substitution bill by the rapporteur of the budgeting bill does not address funds for the general review on the payment to civil servants, which is previewed at the Constitution and regulated by the Law 10.331/01.

Indicators
The forecast growth in Gross National Product (GNP) will drop from 4.5% to 3.5%. They also expect that the reduction in basic interest rates of economy (Selic rate) resumes and reaches an average of 13.6% per year. The rate is currently 13.75% per year.

The rapport points out the reduction of the targeted primary surplus – the saving in income from taxes for the payment of interests of the debt – in R$ 700 million, because of the review of the macro-economic parameters.

Suggestions for amendments
Delcídio Amaral informed that several parliamentary amendments were collectively elaborated from the eight regional seminaries held by the Joint Budgeting Committee in October and November, and from the proposals gathered through the internet. According to Amaral, from the 798 raised suggestions, 458 correspond to the approved amendments. 9,519 parliamentary amendments were totally or partially accepted.

Among the changes directly promoted by the rapporteur is the grant of R$1.5 billion to the minimum agricultural prices policy; the destination of R$150,000,000 for irrigation projects in the Center-West region, which will comply with the constitutional minimum; and adjustment of R$193,000,000 to supply popular amendments; the grant of R$1.3 billion to compensate exporting states for their losses with the waving of ICMS on these products.

The rapporteur also reserved R$94,000,000 to supply income waivers, provided for in projects which are still being processed in Congress, which has not happened in former years.

Congress and Executive
Delcídio Amaral proposes in his report that the possibility to extend additional credits to the Budget by Executive Decrees be restricted. The rapporteur intends to prevent the use of these credits to the increase of primary expenses or to accommodate surpluses in collection.

“The principle that we use in this case is the application of new resources, produced by a possible surplus in the collection of incomes from the National Treasury, and should be discussed with the Legislative Power”, he affirms.

The Executive will not be allowed either to extend credits in amounts which have not been enforced in the previous year or for the Sovereign Fund. The rapport also preserves changes made by the Congress in the Pilot Investment Project (PIP). “In fact, if the Legislative Power identifies a determined investment as of great relevance for the country’s development, to the point it justifies the reduction of the target of primary result, it is not up to the Executive Power to deny that importance”, explains Delcídio.

Report - Sílvia Mugnatto
Editing - Pierre Triboli/Rejane Xavier
Translation – Positive Idiomas Ltda