The change in the fiscal rule, which established the new fiscal framework, instead of the previous spending ceiling, should increase by 8% (from R$ 99.9 billion to R$ 108.3 billion) the budget allocation for the Education area and by 30% (from R$ 168.1 billion to R$ 218.4 billion) that of Health, for the 2024 Budget (in relation to this year) which was presented this Thursday (31) by the federal government to Congress National. This significant increase is due to the change in criteria for adjustments, which are now made based on the increase in revenue, and no longer due to inflation.
The expectation is that these areas will be the first to be fully covered by the new method of readjusting public accounts. Instead of the inflationary correction, the increases in values will be nominal, that is, they will no longer be updated by the inflationary correction, but will take into account the respective floors.
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This information was presented, in a press conference, by the secretaries of the Ministries of Finance and Planning, after they presented the budget piece to ministers Fernando Haddad and Simone Tebet, holders of the portfolios, respectively.
The analysts' assessment is that, with the extinction of the spending ceiling - which set its own criteria for education and health funds – the previous rules come into force again, which include more resources for these areas.
With the new rule, whenever the collection grows, the revenue from the folders will have to follow this variation, a premise that refers to the so-called ‘constitutional minimums’, defined by the Constitution current. Through these provisions, the Union must allocate the equivalent of 18% of tax revenue (a calculation that excludes some taxes and contributions) for Education, while, for Health, the allocation would correspond to 15% of tax revenues for Health.
With the establishment of a fixed rule based on revenue, a kind of floor was created for the areas of Education and Health, of in order to ensure that budgetary resources are never lower than the amount from the previous year, even in the event of a reduction in collection.
