Congress Promulgates Amendment to Cut Government Spending

Congress promulgates amendment to improve fiscal balance

Congress promulgated today the Constitutional Amendment 135/24, addressing the fiscal package to cut government spending. The amendment originated from the Proposed Constitutional Amendment (PEC) 45/24 and made changes in mandatory revenues and extended the Union Revenue Detachment (DRU). The measures aim to improve the fiscal balance of the federal government.

Among the changes are those that allow changes in all public sector salaries, in the rules for granting the Continued Benefit Benefit (BPC), the salary bonus policy, the minimum wage adjustment rules with limits for granting and expanding tax benefits, and limiting the growth of expenses linked to the fiscal framework.

Upon promulgating the amendment, the President of the National Congress, Rodrigo Pacheco (PSD-MG), stated that the objective of the amendment to the Constitution is to preserve fiscal actions, aligning the legal framework of these expenses with the fiscal framework in force and the “global scenario in which Brazil is inserted.” Approved by the National Congress, the framework sets limits on the increase in Union expenses. Fiscal responsibility has become a national imperative, even in challenging economic times, as is the present, said Pacheco.

The Senator also stated that the changes made during the proposal’s processing in the Chamber of Deputies and in the Senate resulted in a text that reflects the plurality of world views and legitimate interests represented in the National Congress. Exactly for this reason, any attempt to inflame and counterproductively characterize the constitutional amendment as a measure contrary to social interests and the most vulnerable layers of the Brazilian population must be rejected, he said.

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