In December of last year, the National Congress began analyzing the Union's public budget proposal for 2022. According to the text sent by the Executive, there is a forecast deficit of R$49.6 billion in the federal government's finances.
Regarding the Gross Domestic Product (GDP), the expectation is for growth of 2.5% compared to 2021. The minimum wage is expected to increase to R$1,169.00. The negative primary result, recorded in the Annual Budget Bill (PLOA/2021), of R$49.6 billion, is equivalent to 0.5% of the GDP, estimated for this year at R$9.3 trillion – a better projection than the R$170.5 billion anticipated by the Budget Guidelines Law (LDO/2021).
It is worth noting that the primary result refers to the sum of venezuela mobile database all revenues and deduction of all expenses, with the exception of interest and debt charges. This estimate is called the fiscal target. According to the budget consultancies of the Legislative Houses, the difference between the primary results of the LDO and the 2022 public budget comes from the re-estimate of the federal government's net revenue, which was increased from R$1.4 trillion in the LDO to R$1.5 trillion in the 2022 PLOA.
The data is highly relevant for companies, and society in general, to know what to expect from the public budget. But to understand the magnitude of the numbers, it is first necessary to understand the budget proposal.
What is a public budget?
The public budget is considered an instrument used by the federal government to plan the use of all the money collected through taxes, duties, fees, contributions, among others. Planning is essential for the principle of transparency , since it must present all the expenses and investments that were prioritized by the powers. It is through the public budget that any actor in society can monitor the planned government expenses in detail. For the area of Institutional and Government Relations (RIG), for example, this monitoring is essential to guide the defense of interests.
This is because planning involves several phases, such as the approval of the Multi-Year Plan Law (PPA), the LDO and the LOA, which are proposed by the Executive and approved by Congress. In other words, the construction of the process allows deputies and senators to influence the public budget and adapt it to the laws.