Newsletter Edition 25 - May 2021


CONOF analyzes a project on the allocation of BPTO resources

The Budget Advisory and Financial Supervision Unit (CONOF) presented an analysis of Bill 143/2019 authored by Deputy Marcos Pereira (PRB-SP) to the Finance and Taxation Committee (CFT), proposing to determine that the resources destined to the Brazilian Patent and Trademark Office (BPTO) shall not be subject to cost containment.

According to the CONOF analysis, “in the original model of the Fiscal Responsibility Law (FRL) only mandatory expenses would be excluded from contingency. Without prejudice to, in each fiscal year, the Budgetary Guidelines Law approving specific reservations regarding contingency, depending on the fiscal situation and the goals and priorities of that year (Brazilian Federal Constitution, art. 165, § 2). The more expenses are exempted from contingency, the greater the reduction that will have to be supported by other discretionary expenses. These include programs designed to meet tax, individual, and State Bench amendments. It is worth mentioning that after the edition of the FRL, Complementary Law No. 177/21 changed the wording of the art. 9, § 2 of it, making an exception to prohibit the contingency of expenses related to innovation and scientific and technological development funded by the National Fund for Scientific and Technological Development (FNDCT)”.

With this, “despite the increase in budgetary rigidity and the greater contingency in other expenses, the project in question contemplates an essentially normative matter, with no direct or indirect repercussion on the Union’s revenue or expenditure since, in case of risk of compliance with fiscal targets, compensation will be made in the remaining portion of discretionary expenses. In such cases, art. 32, X, h, of the Internal Regulations of this House, concluding that there is no budgetary or financial implication”, as described by the Advisory.

The material will be sent to the Finance and Taxation Committee (CFT) for consideration, together with the opinion of the rapporteur and federal deputy Luis Miranda (DEM-DF).

Read the full CONOF newsletter.

Read the opinion of Federal Deputy Luis Miranda.

Read more on the topic.