Brazil Continues Without a Budget for 2006

It’s the middle of April and Brazil still does not have a 2006 budget as a draft budget bill remains without a Congressional vote. Last week the government announced it was emitting temporary measures (medidas provisórias) MPs) to gain access to funding.

The leader of the PSDB in the Senate, Arthur Virgí­lio, has come out strongly against the use by the government of temporary measures for state-run enterprise spending and the financing of government programs.

Virgí­lio denied that the opposition was holding up a vote on the budget. "We are anxiously waiting for the vote. The opposition is not to blame for the delay. That must be clear," said the senator.

The president of the Brazilian Congress, senator Renan Calheiros (PMDB, Alagoas state), has scheduled a vote on the 2006 budget for 11:00 am today.

"The budget has to be voted on. There is no reason for further delay. There are only a few small details to be worked out. If we cannot reach a consensus, we will just decide the thing by a vote," said Calheiros.

In order to ensure a quorum for the vote, Calheiros announced he has contacted party leaders and ordered them to mobilize their members.

The government and the opposition in Congress have reached an agreement on one sticking point in the 2006 budget negotiations, which means that only four problems remain.

According to the man who is steering the budget through Congress, deputy Carlito Merss (PT, Santa Catarina), an agreement has been reached on the Kandir Law, which compensates states for tax exemptions (the ICMS tax) given to exporters.

After intense negotiations involving states, the executive branch and the legislature, it was decided states will receive an additional R$ 5.2 billion (US$ 2.4 billion), which will come out of the federal government’s appropriations.

The opposition (PFL and PSDB) still have four other demands they want met before voting on the budget. They are: more funding for the Coari-Manaus gas pipeline; more money for an irrigation project in the state of Bahia; more money for the state of Sergipe; and more funding for the 2007 Pan American games that will take place in the city of Rio de Janeiro.

It should be pointed out that the states mentioned above, Bahia and Sergipe, and the city of Rio de Janeiro, are governed by the PFL.

"If those issues can be resolved, we will vote the budget," declared senator Arthur Virgí­lio, (PSDB, Amazonas), an opposition leader in the Senate.

Agência Brasil

Tags:

You May Also Like

Brazil President Says She Doesn’t Want Revenge, But She Won’t Forgive Her Torturers

Brazil’s Benoni de Arruda Albernaz, an army captain and the head of an interrogators ...

Tired of Waiting for Government Action Brazilian Indians Take Over Land

Tupinikim and Guarani Brazilian Indians who live in the southeastern state of EspÀ­rito Santo ...

Volkswagen Brazil to Close Main Plant If No Agreement Is Reached

Volkswagen has warned it will close down its main factory in Brazil if an ...

Vinicius and Jobim Back in Fashion with Orfeu’s Revival in Brazil

Number of performers: 16-18 actor/singers (all black). Number of stage musicians: seven (on guitar, ...

Brazil to Sign 15 Accords with Japan and South Korea

Brazilian President Luiz Inácio Lula da Silva, on official trip to South Korea and ...

With a Little Help from China Mining Goes On Unchanged in Brazil

In spite of the world crisis, Brazil’s mining sector, which answered to 48% of ...

Brazilian Government’s Portal Promises a Lot But Is Off to a Slow Start

Services and information about federal actions and programs by the Brazilian government, which were ...

Brazil In Talks to Buy Texas Oil Refinery

Petrobras – Brazilian Petroleum, S.A. – wants to close a deal with the US ...

Sugar: After Win Against EU, Brazil Has Big Plans

The European Union (EU) will have to reduce its subsidies to sugar exporters. This ...

In Brazil Investors Snub Oil Price Hike

Brazilian and Latin American markets mostly advanced on the day, although Argentina moved lower. ...