Ten days before the end of the parliamentary recess, President Lula once again faced a conflict with Congress by stating that, until last year, it was Congress that governed the country, in a reference to control of the Budget. The declaration occurred on the same day that the government made official the cut of R$5.6 billion in the so-called commission amendments, a decision that angered deputies and senators, who will be responsible for analyzing issues dear to the Federal Government, such as the veto of a calendar release of amendments, new rules for pesticides and mandatory visas for foreigners.
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Budget Veto
President Lula (PT) sanctioned, on Monday (22/01), the 2024 Budget, with a veto of R$5.6 billion to parliamentarians’ committee amendments. Deputies and senators, who will have the final say on the law, already admit the possibility of overturning the section in Congress.
On the other hand, the president sanctioned the electoral fund of R$5 billion for the municipal campaign, as it had been proposed by congressmen.
Parliamentary Amendments
The National Congress approved a record amount of R$53 billion for amendments. Even with Lula’s veto, the balance will be around R$47.5 billion, which will still represent an unprecedented value available to parliamentarians.
The Planalto Palace outlined a strategy to try to avoid a defeat in the veto that deals with the amendments. The idea is to present a plan to Congress to restore the R$5.6 billion. Otherwise, parliamentarians will take the veto for granted. The vetoed amount corresponds to around 10% of the total approved by parliamentarians in amendments.
The decisive veto of the amendments adds to other disagreements that the PT’s administration has had with Congress in recent months, such as when it contradicted parliamentarians by trying to suspend the payroll tax exemption for certain sectors once and for all, or by vetoing the law approved on the time frame for the demarcation of indigenous lands.
‘Centrão’ was the hardest hit
President Lula’s (PT) veto of parliamentary amendments in 2024 hit ministries commanded by ‘centrão’ parties hard. Communications, Tourism, Sports, Integration, and Regional Development are among the departments that suffered the most losses from these amendments, resources that deputies and senators sent to works and projects in their electoral strongholds and, in doing so, reap political capital.
At the same time, ministries more closely linked to the president, such as Health, Women, Racial Equality, Indigenous Peoples, and the Environment, were spared or had fewer amendments removed from this year’s budget forecast. Given this, the PT member launched an operation to prevent the outbreak of a new crisis with the National Congress, which returns from recess in February and has already been complaining about other actions recently taken by the Executive.
Analysis:
Recently, leaders from both allied and opposition parties convened to address a recent setback for the government and strategize a reversal of Lula’s decision regarding commission amendments. This particular form of negotiation does not necessitate compulsory payments, but post the conclusion of the undisclosed budget, it transformed into a political bargaining tool for legislators seeking to secure support for Executive agendas.
Despite encountering numerous challenges and facing tense moments in Congress, the Federal Government successfully pushed through a series of crucial reforms and bills pivotal for the nation’s economy and administrative framework. As reported by Folha de São Paulo, Lula’s administration has fulfilled 20% of the campaign promises made. However, the political landscape remains delicate, especially given that the government’s coalition in Congress is the smallest since the return to democratic governance. Additionally, indications from prominent political figures suggest that the hurdles to political stability are poised to intensify.
