Bolsonaro sanctions the law that changes the state aid and recovery regime

President Jair Bolsonaro (PL) signed a law that modifies the aid plan and the RRF to states and DF. Photo: Isaac Nóbrega / PR

On Wednesday (5), President Jair Bolsonaro (PL) sanctioned the complementary law 123/2021 which modifies the aid plan to the states and the federal district and the tax recovery regime (RRF), which allowed the installment of debts entities. The legislation was published today in the Official Journal of the Union (DOU). The new rule removes from the expenditure ceiling of entities that have joined the RRF the expenditure with parliamentary amendments of the bench and the individual.

“The legislative proposal aims to expand the list of expenditures not taken into account in the expenditure limitation of subnational entities, whose debts have again been refinanced by the federal government. With this, federal resource transfers with related investments, as well as the bench and the particular amendments, including the special transfers ”, informed the Secretary General of the Presidency.

Previous legislation allowed states, which were refinancing their debts, to remove from the spending limit minimum spending on health and education that increases more than inflation measured by the IPCA as well as spending paid with donations and transfers. Union volunteers. the sanctioned law increases the deduction from the expenditure limit.

Accordingly, expenditures paid with federal transfers earmarked for specific expenditures and all transfers provided for in Supplementary Appropriations and Finance Acts may be excluded. These include fund-to-fund transfers, the Contribution for Intervention in the Economic Area (Cide), the education allowance and the National Program for Access to Technical Education and Employment (Pronatec). With information from Agência Brasil.

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