Understand Congress’s irritation after Planato signaled it would have to veto amendments worth 1.9 billion reais

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The article was included by the rapporteur in the House, MP Aguinaldo Ribeiro (PP-PB), in the government project that reduces tax exemptions by 10%. The Turtle revalidates parliamentary amendments not funded by the government between 2019 and 2023, including those canceled. He clarified that the article was inserted at the request of the Executive, to preserve unpaid balances, in particular those of works in progress or stopped. Planalto denies having participated in the maneuver.

In the Senate, the text was reported by the leader of the government in Congress, Randolfe Rodrigues (PT-AP), who also maintained the article. Planalto, however, is trying to dissociate itself from this agreement. As it is a fiscal issue, Lula will have to sanction or veto the project this year.

“Lack of commitment”

The Centrão parliamentarians say they are irritated by what they describe as a failure to fulfill their commitments and affirm that the government was represented in the negotiations which made the adoption of the text possible. The participants in the agreement reinforced the rapporteur’s version according to which the system was presented as a technical solution to guarantee the release of resources already committed.

Members of the Ministry of Finance say that during meetings on the project, parliamentarians expressed their intention to include the device in the text during the plenary analysis. According to them, the subject has not, however, been the subject of an agreement with the government. They also claim that if Lula vetoes, there will be no break in the agreement, since it was not put on the table as a condition for voting on the project.

This is the second episode in a week in which government supporters and Planalto disagree over moves in Congress. Last Wednesday, the Minister of Institutional Relations, Gleisi Hoffmann, criticized the Leader of the Government in the Senate, Jaques Wagner (PT-BA), for leading the dosimetry bill, which reduces the sentence of former President Jair Bolsonaro and others convicted of coups. Wagner said he had reached a procedural agreement to allow the proposal to move forward, taking personal responsibility for its articulation, after the minister publicly denied the existence of any negotiations involving the project.

In the case of the turtle that resurrected the amendments, the predominant interpretation among Centrão parliamentarians is that the Planalto attempted to transfer political attrition to Congress.

— The decision to suspend or veto is contrary to what was decided by Parliament and agreed internally with all parties. If the Chamber or the Senate do not agree, they can appeal to the STF, but it is a very delicate situation, because it is already the last instance and, probably, the agreement will be maintained — said deputy Cláudio Cajado (PP-BA), who was rapporteur of the so-called Blindagem PEC, which increased the protection of parliamentarians against investigations.

Among government supporters, the strategy was to distance themselves from the system and reinforce the discourse according to which the article was included without the knowledge of the PT magistrates. Allies of the government say that the possible decision to veto aims to limit the damage and prevent the executive from being associated with the reopening of the mechanisms linked to the old secret budget.

— The turtle that was placed was included without the knowledge of the PT bench, due to pressure from the Centrão and Bolsonarism. Dino’s decision was excellent. These are amendments to the secret budget there, they have nothing to do with us — declared MP Rogério Correia (PT-MG).

At Planalto, the assessment is that the total sanction of the system would increase the risk of judicialization and could generate new tensions in relations with the Supreme Court.

In opposition, despite louder public discourse against the government and the STF, internal assessments are more fragmented and there is no consensus against granting a veto.

— There was an agreement, yes, but it is unconstitutional. The most recent decision (by Dino) regarding the rehabilitation of unpaid remains was correct — said MP Kim Kataguiri (União-SP).

In his decision, Dino said that the turtle included in the project tries to reopen a space for the execution of resources from the old secret budget, considered unconstitutional by the Court due to a lack of transparency and objective criteria. Among parliamentarians, the injunction was received with surprise and interpreted as a movement which contradicts an articulation carried out by the Executive itself.

Dino argued that regularly canceled unpaid balances no longer legally exist and that their revalidation amounts, in practice, to the creation of a new authorization for unsupported spending in the current budget law.

This episode occurs in a context of already tense relations between the executive and legislative powers, after a year marked by delays in the publication of amendments. The Planalto still has to formalize its decision and, if it opts for a veto, the issue will return to Congress.

The Dino decision also constitutes another chapter in the conflict between the STF and Congress over control of the Union budget. In addition to deeming the secret budget unconstitutional, the Court demanded transparency and increased oversight of parliamentary amendments, including the authorization of Federal Police (PF) operations.

For the minister, the revalidation of the amendments included in the project violates the principle of budgetary annuality, breaks the logic of the constitutional system of public finances and compromises legal certainty by making the cessation of State obligations unpredictable.

In addition to allowing the revalidation of the amendments, the approved project authorizes the pooling of these remaining payments to finance larger projects, which, in the opinion of technicians and parliamentarians, would facilitate the execution of resources that, in isolation, would be insufficient for their initial objectives.