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Deputies vote LDO and go on recess in the final stretch of the campaign

Deputies vote LDO and go on recess in the final stretch of the campaign
Deputies vote LDO and go on recess in the final stretch of the campaign

The Legislative Assembly of Paraná should have, on Monday (5) and Tuesday (6), its last three sessions of the “first semester”. The expectation is that from Wednesday (7) the deputies will go into recess, only returning to work after the election of October 2nd.

The traditional July recess has not yet been enjoyed by parliamentarians because they have not yet passed the Budget Guidelines Law (LDO). Constitutionally, deputies can only enjoy the recess after the approval of the LDO, which will be put on the agenda in this week’s sessions. Thus, in due course, deputies will be excused from attending the Assembly precisely in the last three weeks of the campaign.

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Usually voted on in the first semester, this year’s LDO had its processing postponed with the justification that it would be necessary to wait for the impacts of Complementary Law 194/2022, which established a ceiling for ICMS on fuels, energy, telecommunications and collective transport, in the collection of the State. According to the rapporteur, Tiago Amaral (PSD), with the estimated loss of R$ 6.3 billion in collection made by the Secretary of State for Finance after the approval of the new rule, there could be a need to redo the LDO draft or amend it to conform to a new revenue forecast.

The text approved last week by the Budget Committee, however, did not review the collection, pointing out that there was no impact of the Complementary Law on the collections of July and August. Thus, it was left to the Annual Budget Law (LOA) – the detailed State Budget based on the LDO guidelines -, discussed in the second half, to update the collection estimates.

Learn more about the 2022 Elections in Paraná

“The Parliamentary Complementary Law 194/2022 limited the collection percentage (18%) of ICMS on fuel, electricity, communications and public transport. The fact caused a delay of approximately 45 days in the PLDO vote [Projeto de Lei de Diretrizes Orçamentárias], this decision was necessary to observe the behavior of the collection in the months of July and August”, pointed out Amaral in the report. “Despite the estimates, the result presented by Paraná did not show such fluctuation and was in line with the other months of the year. Furthermore, it was also 14% higher than the same period last year”, he continued.

“Given the data presented, it is still not possible to say whether the state budget scenario will be radically affected by PLP 194/2022, since the global collection effected in the months of July and August was not reduced. However, the Annual Budget Law, which will be sent until September 30, will update the collection estimates and fix expenses for the next year”, he concluded.

Thus, the 2023 LDO will be voted on in the plenary, predicting a total collection of BRL 58.2 billion for next year, almost BRL 10 billion more than forecast in this year’s edition, but still with a forecast of expenses not covered by the Budget in the order of R$ 2.5 billion. In the Budget Committee, the project received 92 amendments, of which 65 were accepted, one was partially accepted and 26 were rejected. “Among the amendments accepted and incorporated into the text of the general substitutive presented as an annex to the present one, we have that the vast majority of the amendments are simply a reinforcement of the appropriation, which is why we failed to specify in this opinion”, Amaral reported.

The article is in Portuguese

Tags: Deputies vote LDO recess final stretch campaign

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