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Triggers included in the project that reduces fuel prices should generate savings of R$10 billion next year, says Durigan

The Minister of Finance, Dario Durigan, stated that triggers included in the project that allow the government to use extra revenue, from the sale of oil, to reduce taxes on fuel should reduce mandatory expenses by around R$10 billion in...

Triggers included in the project that reduces fuel prices should generate savings of R$10 billion next year, says Durigan
365 Summary

"There is a decrease, a mitigation of this rate of growth that will already be seen next year at around R$ 10 billion, which is a bit of the smallest evolution of the mandatory expenditure that we expect for next year, already opening up important fiscal space for other discretionary demands and even for our trajectory of fiscal results", stated the...

  • The text foresees two restrictions to contain the increase in spending next year.
  • The first allows, in the event of a deficit projected by the government, to separate the growth of certain funds from Net Current Revenue (RCL).
  • The second limits the increase in these resources to the ceiling provided for in the fiscal framework, which is a maximum of 2.5% above inflation.

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The Minister of Finance, Dario Durigan, stated that triggers included in the project that allow the government to use extra revenue, from the sale of oil, to reduce taxes on fuel should reduce mandatory expenses by around R$10 billion in 2027. The proposal was approved by the National Congress this Wednesday (12). "There is a decrease, a mitigation of this rate of growth that will already be seen next year at around R$ 10 billion, which is a bit of the smallest evolution of the mandatory expenditure that we expect for next year, already opening up important fiscal space for other discretionary demands and even for our trajectory of fiscal results", stated the minister, in an interview with journalists at the ministry's headquarters.

The text foresees two restrictions to contain the increase in spending next year. The first allows, in the event of a deficit projected by the government, to separate the growth of certain funds from Net Current Revenue (RCL). The second limits the increase in these resources to the ceiling provided for in the fiscal framework, which is a maximum of 2.5% above inflation. When asked which expenses would be subject to the freeze, the minister said that there is no limitation. "We are going to notice a continued growth in commitments. What we are doing is making some commitments that did not grow at the pace of the framework compatible," he explained, adding: "They grew with another variable isolated from net current revenue or something started to be blocked by the framework, so we will have growth limited to the fact that the budget as a whole will also start to grow next year." Relationship with Congress Durigan also commented that he has always had an "open" and "frank" relationship with the National Congress and said he believes that President Luiz Inácio Lula da Silva (PT) does too. This is because parliament's relationship with the Executive had been strained since April, when Jorge Messias' nomination to the Federal Supreme Court (STF) was rejected in the Senate. In the last week, however, the president of the Senate, Davi Alcolumbre (União-AP), and Lula began to show signs of rapprochement. This Wednesday (12), the two met at Palácio da Alvorada to try to unlock the vote on projects that the government considers priorities - which took place during the afternoon. "I always say, I told you this, politically, the relationship I have with the National Congress has always been very open and very frank. I think President Lula has also always had this relationship, there are some timing issues, but I would say that now we are also experiencing a good moment between President Lula and the leadership of Congress, both in the Chamber and in the Senate", reported Durigan. "So I think it helps, yes, and we have been progressing well, including now on the fiscal issue, I am also quite satisfied", he added. Dario Durigan Globo