The representative of PSDB at the Joint Committee on the Budget, Deputy Narcio Rodrigues (MG), wants the government to authorize the transference of an allotment of R$1.3 billion – of Kandir Law, from the 2007 Budget, which has never been transferred by the National Treasure – to the exporting states.

According to Rodrigues, the enforcement of the resources is the priority of that party at the committee. He avoided telling that the collection can postpone the procedure of the bill on Budgeting Guidelines (LDO), to 2010, but stressed that the party will not give up on the assistance to the governors. “We want to actuate in good will, but I would like to resolve that issue before we start voting LDO”, he noticed.

Rodrigues advised the president of that college, Senator Almeida Lima (PMDB-SE), also to prioritize that subject. Deputy Gilmar Machado (PT-MG), who is the representative of the government at the committee, is already negotiating the authorization of those resources with the Planning Ministry.

Agreement in 2007
The resources of Kandir Law were part of an agreement among the parties during the voting of the 2007 budget. The government destined R$4.87 billion to exporting states, for compensation and fomentation. From that amount, only the parcel claimed for by PSDB was not authorized.

On Tuesday (12), during a public hearing with the Planning Minister, Paulo Bernardo, Rodrigues mentioned that subject. The minister promised to analyze a possible disbursement schedule.

The deputy also asked the ministry that the 2010 budgeting bill, which should be forwarded in August, reserve amounts regarding Kandir Law. He reminded that, in the last few years, the lack of allocations has been a political hampering for the approval of the bill at the Budgeting Committee, since opposition obstructs its voting. “Every year it is like a soap opera”, outlined Rodrigues.

History of the law
Kandir Law (Complementary Law 87/96) had its source in a project by the former deputy from São Paulo, Antonio Kandir. It regulated ICMS, but was more known for exempting wares and services targeting export from the main states’ tax.

That exemption immediately reduced the revenues of the states. In order to compensate the losses, that law determined that the Federal Government should include in the yearly budgeting law, until 2002, specific funds for the states’ coffers. Later, Complementary Law 115/02 established a specific amount for distribution in 2003.

From 2004 on, the transferences started to depend on negotiation between the governors and the Finances Ministry, mediated by the Budgeting Committee. This year, the budgeting law authorized R$520,000,000, from an amount of R$3.51 billion.

Report - Janary Júnior
Editing - João Pitella Junior
Translation - Positive Idiomas Ltda