Congress approves transfer of R$15 billion to states and municipalities

The National Congress approved a bill from the Lula government that releases more than R$15 billion in additional credit for states and municipalities to compensate for revenue losses. The agenda was reviewed by deputies and senators in a joint session held this Thursday, the 9th.

The project, which is now being approved by President Luiz Inácio Lula da Silva (PT), initially provided for an increase of R$ 207.4 million to this year’s Budget to serve the Ministries of Agriculture and Livestock; Education; Justice and Public Security; of Transport; of culture; of Defense; and Ports and Airports.

The value was later modified to more than R$15 billion at the government’s request and will be distributed as follows: R$8.7 billion should compensate for states’ losses with the reduction in ICMS on fuels in 2022, and R$6, 3 billion to compensate for losses related to state and municipal participation funds (FPE and FPM) in general revenue.

Voting on the proposal was the only item on the agenda of Congress this Thursday. Party leaders reached an agreement and overturned, due to lack of consensus, the analysis of 33 presidential vetoes and six other credit releases to the Union Budget. Among the vetoes was that of the time frame for the demarcation of indigenous lands. There is a new session of Congress scheduled for November 22nd.