Haddad says the government is considering going to the STF against Pacheco’s decision that overturned the reimbursement of municipalities

The Minister of Finance, Fernando Haddadannounced that the federal government is considering taking action in STF (Supreme Federal Court) against the decision that removed the reburdening of municipalities from a provisional measure currently being processed in the National Congress. The possibility of action is being analyzed by the AGU (Attorney General of the Union), but has not yet been submitted to President Luiz Inácio Lula da Silva (PT). Haddad highlighted the importance of compensation for all primary tax expenditure, in accordance with the complementary law approved by Congress. Despite ruling out discomfort with Congress, the minister adopted a demanding tone and suggested that the press question the other Powers about compliance with the Fiscal Responsibility Law. He emphasized the need to respect the laws so that the country is seen as serious. Haddad highlighted that the tax law is not just for the Executive, but for the entire country. “We have to understand that all primary tax expenditure must be accompanied by compensation. This is not me making it up, it’s not the president making it up. It is a complementary law approved by the same Congress,” he said.

On Monday, the president of the Senate, Rodrigo Pacheco (PSD-MG), extended for 60 days the validity of the provisional measure to reinstate the payroll, but determined the removal of the part referring to the tax benefit for city halls with up to 156,200 inhabitants . The decision represented a defeat for Lula’s government. The president of the Senate stated that the issue must be fully addressed by bill, not by MP. In response, Haddad reiterated the need for a “pact” between the Three Powers to reorganize public finances, highlighting that the fiscal result depends on Congress. Pacheco returned the ball, saying that there was no need for a reaction from the Ministry of Finance on its decision to overturn the re-encumbrance of municipalities’ payroll.

Published by Felipe Cerqueira

*Report produced with the help of AI