Feb 18 • 02:00 UTC 🇧🇷 Brazil Folha (PT)

Exceptions to the fiscal framework for funding the public machine grow and threaten budget control

Exceptions to Brazil's fiscal framework have increased due to a recent Supreme Court ruling, putting pressure on public expenditure control.

In Brazil, exceptions to the fiscal framework meant to govern public spending have expanded following a Supreme Court decision by Justice Alexandre de Moraes. This ruling allows funds from the Federal Public Ministry to escape the existing fiscal cap, raising concerns about the management of public finances. As more expenditures fall outside this budgetary ceiling, there are fears of escalating national debt and further weakening of fiscal discipline in Brazil.

The modification regarding the Ministry of Public reflects a broader trend initiated by another Supreme Court ruling allowing the Judiciary's self-generated revenues to remain outside the fiscal framework. This precedent was set after a request from the Brazilian Association of Magistrates (AMB) to treat the Judiciary on par with universities, military schools, and educational institutes, all of which have been permitted to utilize their own revenue sources to fund expenses beyond the established limits.

Since the fiscal framework was introduced in 2023, these exceptions have been growing, challenging the integrity of budget management in Brazil. The ongoing adjustments signal potential trouble for governmental financial control efforts, further exacerbating the risks associated with national debt and public accountability, as the ability to monitor and manage public spending becomes increasingly complicated by these legal exceptions.

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