The Budget Consultancy and Financial Inspection (CONOF), presented to the Finance and Taxation Committee (CFT), an analysis of PLP 143/2019, authored by Deputy Marcos Pereira (PRB-SP), who proposes to determine that the resources destined to the National Institute of Intellectual Property (INPI) will not be subject to expense limitation.
According to the CONOF analysis, “In the original model of the Fiscal Responsibility Law (LRF), only mandatory expenses would be excluded from contingency. Without prejudice to the Budget Guidelines Law (LDO) approving specific restrictions on contingency each year, depending on the fiscal situation and the goals and priorities of that year (CF, art. 165, § 2). The more expenses are exempted from contingency, the greater the reduction that will have to be supported by other discretionary expenses. This includes schedules designed to meet the tax, individual and state bench amendments. It is worth mentioning that after the edition of the LRF, Complementary Law No. 177/21 changed the wording of art. 9, § 2 of the LRF, making an exception with the purpose of prohibiting the contingency of expenses related to innovation and scientific and technological development funded by the National Fund for Scientific and Technological Development (FNDCT) ”. Read more on the ABPI website and check out the full CONOF newsletter and the opinion of federal deputy Luis Miranda.
With this, “despite the increase in budgetary rigidity, and the greater contingency in other expenses, the project in question contemplates a matter of an essentially normative nature, without causing direct or indirect repercussions on the Union’s revenue or expenditure, since, in in case of risk of compliance with tax 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 Consultancy.
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 Congressman Luis Miranda.
Read more on the topic.