Under pressure to balance the government’s accounts, President Luiz Inácio Lula da Silva criticized the power that Congress has over the Union Budget and admitted that the Executive has lost power and has been having difficulties defining how to spend public money. Furthermore, the Health Committee of the Chamber of Deputies forwarded transfers of more than R$4.2 billion in 2024 without identifying which deputies and senators were the authors of the amendments, worsening the crisis with the Federal Supreme Court (STF).
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Without Citing the Former President
Lula also stated that his predecessor did not care about the budget and let Congress do what it wanted, creating the current difficulties.
Victories
The president, however, celebrated what he called the victories of his administration, which managed to implement changes in the relationship with parliamentarians and obtained victories in the approval of the PEC of Transition and Tax Reform, but considered that this does not happen as quickly as he wants.
Without Experience
Lula also said that he had no experience dealing with the country’s extreme right-wing activists and admitted that he knows how big the government is in Congress. Since the beginning of his third term, Lula and his main assistants have tried to move away from the ideological agenda and focus on the economic agenda in Congress.
Anonymous Transfers
The Health Committee of the Chamber of Deputies forwarded transfers of more than R$4.2 billion in 2024 without indicating which deputies and senators are the sponsors of the amendments. The lack of transparency contradicts the promise of Deputy Dr. Francisco (PT), president of the collegiate leader in amendments. He said, in March, that he would establish ways to show the political beneficiaries of the funds.
STF
The minister of the Federal Supreme Court (STF) Flávio Dino summoned on Friday (19/06) President Lula (PT) and the presidents of the Chamber of Deputies, Arthur Lira (PP-AL), and of the Senate, Rodrigo Pacheco (PSD- MG), to express their views on whether there was non-compliance with the court’s decision that declared the so-called rapporteur’s amendments unconstitutional. The minister gave 15 days for the authorities to present their opinion to the Supreme Court.
PSOL, the party that filed one of the actions that overturned the instrument, which was used for political bargains between Congress and the federal government, should also speak out on the issue. Dino’s request comes amid a crisis between the Supreme Court and Congress.
Rapporteur Amendments
At the end of 2022, still during the Jair Bolsonaro government, the Supreme Court deliberated on four actions that dealt with rapporteur amendments (important sources of money to Congressmen that can be invested in their political bases).The then president of the court and rapporteur on the matter, Rosa Weber (now retired), voted to prohibit the use of the instrument by Congressmen due to the fact that it allowed resources to be made available without naming those who created them. The minister said that this use of the amendments did not follow constitutional principles and that it violated the separation of Powers and the right to information.
Crisis with Congress
The Senate and the Chamber have shown irritation with the court’s decisions, especially those of Minister Alexandre de Moraes. As a consequence, they threaten to continue projects that target the STF. Last year, the Senate approved a PEC (proposed amendment to the Constitution) that restricts monocratic decisions.
Analysis:
The growing tension between the Executive and Congress regarding control of the Union’s budget reveals profound challenges for governability in Brazil. President Lula’s criticism of Congress’s disproportionate power over public finances highlights a reality that limits the government’s ability to implement its policies effectively. This dynamic weakens the Executive, forcing it to depend on continuous negotiations with the Legislature to approve essential measures, which can delay the implementation of reforms and public policies necessary for the country’s development.
Added to this, the lack of transparency in parliamentary amendments that do not identify the authors further aggravates the crisis between the Legislature and the Federal Supreme Court (STF). The STF’s decision to declare the rapporteur’s amendments, used for political bargains, unconstitutional, exacerbated the conflict with Congress, which sees this intervention as a threat to its autonomy. The lack of clarity and accountability in the allocation of these resources compromises public trust in institutions and can encourage corruption and the inappropriate use of public funds.
For the Lula government’s governability, this situation requires a careful and strategic approach. The president needs to balance his relations with Congress to ensure the approval of his proposals while reinforcing his commitment to transparency and fiscal responsibility.