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Justices approve budget of 2018 and remove adjustment of remuneration

Wednesday, August 09, 2017

The Brazilian Federal Supreme Court (STF) approved, in an administrative session, the budget proposal for the year 2018, in the amount of R$ 708 million, 3% higher than that established in the LOA (Annual Budget Law) approved by the National Congress for 2017 , which was R$ 686 million. The proposal is within the spending maximum introduced by Constitutional Amendment (EC) 95/2016, which includes cuts in several areas and leaves out the replacement of inflationary losses of the remuneration of ministers, and under the terms of article 25 of the LDO (Law of Budgetary Guidelines) for 2018.

"The proposal is strictly in accordance with the Constitution," said Justice Cármen Lúcia. She clarified that the proposal does not accommodate the monetary adjustment of subsidies, welfare benefits or medical and has undergone modifications to reduce the expense in contracts with service providers.

The document that will be sent to Congress highlights the restrictions introduced by the amendment of the spending maximum, EC 95/2016. Under the new tax regime, in the early years there is the transition system in which the Executive absorbs expenses planned by other branches. The commitment was made in 2017 and should be maintained in 2018. With this, it was possible to accommodate a small adjustment in the budget between 2017 and 2018.

- See the full text of the STF budget proposal for 2018.

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