Government places $33.6 bn cap on spending until February
The federal government has been authorized to spend a maximum $33.6 billion until February 12, according to a decree signed into law Monday (Jan. 18) capping government spending until the detailed plans for this year's budget have been established. According to the Ministry of Planning, the amount is one twelfth of the budget for the ministries and agencies of the executive branch.
The guideline applies to both discretionary (non-mandatory) and mandatory spending. Discretionary spending was limited to $2.73 billion. Out of this total, $630 million has been earmarked for the Accelerated Growth Program (PAC); $186.7 million has been assigned to binding parliament-ordered appropriations, and $1.9 billion can be used for other discretionary costs.
Mandatory spending is limited to $30.84 billion. This cap does not apply to a number of cost items, including the Bolsa Família conditional cash transfer program and mandatory spending on health.
According to the Ministry of Planning, other mandatory costs have also been exempted from the restrictions, including payroll costs and such financial expenses as interest, debt service charges, and other financial costs. Other exclusions are costs funded by donations and partnerships.
According to the ministry, the authorized amount is enough to meet the needs of the various ministries until the final publication of the detailed plan for the 2016 budget on February 12, after President Dilma Rousseff and her economic advisors have established the appropriations and the monthly disbursement plan.
*With additional reporting by Paulo Victor Chagas.
Translated by Mayra Borges
Fonte: Government places $33.6 bn cap on spending until February
