DF bench articulates withdrawal of the Constitutional Fund from the new fiscal framework By Reuters

by time news

2023-06-07 00:35:42

© Reuters. Aerial view of the Congress, in Brasília 04/18/2013 REUTERS/Ueslei Marcelino

BRASÍLIA (Reuters) – The bench of federal deputies and senators from Brasília articulates a way to remove the Constitutional Fund of the Federal District from the fiscal framework, after this point was included during the course of the proposal in the Chamber of Deputies, an initiative that could delay the entry into force of the framework replacing the public spending ceiling.

The federal parliamentarians of the DF, together with the governor of the capital, Ibaneis Rocha (MDB), and former governors, met this Tuesday with the president of the Senate, Rodrigo Pacheco (PSD-MG), to ask him for help in excluding the framework background.

The leader of the PSDB in the Senate, Izalci Lucas (DF), told Reuters that he made this request directly to President Luiz Inácio Lula da Silva during a meeting of House leaders with the Chief Executive the day before. According to him, Lula would have seen the initiative with good eyes.

One of the ways to contemplate this, according to the toucan, would be to withdraw the inclusion of the fund in the new tax rule, which would force the framework to go back through the Chamber. This exit would only occur if the deputies pledged to maintain the exclusion — then the proposal would go on to presidential sanction.

Another possibility, according to the PSDB leader, would be to approve the text as it came from the Chamber, with inclusion, and Lula would later veto it. Then, in a future session of Congress, senators would pledge to uphold the presidential veto.

“The president was in favor of withdrawing the fund because it was not forwarded directly in the Executive’s proposal to Congress”, said Izalci Lucas.

The rapporteur for the framework in the Senate, Omar Aziz (PSD-AM), told Reuters that, for now, there is no decision on whether or not to work with the fund. He said he will talk to senators, deputies and the Planalto Palace to make a decision.

(Reporting by Ricardo Brito and Lisandra Paraguassu)

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