Brazil Administration Releases Another R$3 Billion in Congressional Appropriations

RIO DE JANEIRO, BRAZIL – The Civil House (Presidential Cabinet) sent a presidential message to Congress announcing the release of an extra appropriations payment of just over R$3 billion (US$ 730 million).

The text was published in a special edition of the Federal Gazette yesterday afternoon, August 6th, after UOL had announced that the government was negotiating funds to comply with the payment of parliamentary budgetary riders, to advance the social welfare reform.

The reform was approved in the Chamber’s first round in July, but the second round of voting, which is compulsory, was scheduled for August, after the congressional recess. The Chamber’s president, Rodrigo Maia (DEM-RJ), said he hoped this would be closed by Wednesday, August 7th. After that, the proposal will proceed to the Senate.

Before the vote in the first round, the government pledged to release R$20 million in parliamentary appropriations riders destined for individual deputies. With the latest payments, the government expects to meet this commitment. Presidential advisors said privately to the report that this was regarded as the government’s last resort to pass the bill.

Onyx Lorenzoni, the Presidential Chief of Staff, and Rogério Marinho, the special secretary of Social Welfare and Labor, spent the day negotiating with government and Centrão legislators. Both the Minister of Economy, Paulo Guedes, and Maia were cognizant of the negotiations. However, Maia did not seek to be directly involved in the process.

Challenged by UOL, the spokesman for the presidency, Otávio Rêgo Barros, rejected such negotiations. He argued that, according to the Ministry of Economy’s budget department, this is a reallocation between ministries. “We do use bartering in this legitimate and democratic process under which we live.”

According to leaders in the Chamber and government, there was pressure from the Centrão parties for the extra appropriations to be approved before the second round of voting on the Social Welfare reform bill. However, Maia and government leaders were opposed to this prospect as it could suggest a direct association between payment of funds and Social Welfare votes.

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