Board threatens to pass on R $ 39 billion to States Other Services

Value would be compensation for regional governments to the Kandir Law, which exempted ICMS from exports; ruralista group articulates voting

In the wake of the PEC vote on the tax bill, MPs threaten to analyze a project that obliges the government to transfer R $ 39 billion to the states, as compensation for the Kandir Law, which exempted the ICMS from exports. Paulo Guedes says that the TCU exempted the debt union. The House of Representatives threatens to vote on a bill that obliges the federal government to transfer R $ 39 billion to the states as compensation for the Kandir Law, which exempted the ICMS from exports. The articulation comes mainly from parliamentarians from the ruralist bureau and comes in the wake of the lightning approval on Tuesday night of the Constitutional Amendment Proposal (PEC) that ties the budget management even further. The mayor, Rodrigo Maia (DEM-RJ), however, says he expects the "green light" of the economic team to guide the project.

Court hearing. Guedes criticized yesterday in the Senate the Law Kandir
The economic area works behind the scenes to further bar this tariff-bomb to the public accounts with the joint negotiation of a program of aid to the States. The strategy is to seek dialogue and negotiate with parliamentarians and governors

Approved in 1996, the Kandir Law exempted ICMS exports. In return, he predicted that the Union would make transfers to states and municipalities to compensate them agreement for a new project, which includes the division with states and municipalities of pre-salt exploitation resources. The elaboration of the project had already been negotiated, but the political crisis put the passages of the Kandir Law on the agenda.

The government did not include in the first budget revenue and expenditure evaluation report forecast expenditures to offset the Kandir Act in 2019, which displeased the governors and their counterparts. Guedes wants to end the compensation of the Kandir Act to states, which he does not consider more appropriate, and replace it with a global agreement that can guarantee more resources for regional governments in the coming decades via a division of the Social Fund of the pre-salt. "The states do not even dream of the resources they will start to receive when the oil comes off the ground," the minister said in a public hearing at the Senate Economic Affairs Committee (CAE). Guedes affirmed that the Court of Auditors of the Union (TCU) analyzed the issue and exempted the Debt Union, as anticipated by the Stake / Broadcast.

In the assessment of a member of the economic team, the new format of the Social Fund over time may be better for all states than the Kandir Act. The source points out that it is necessary to seek open and mature dialogue with Congress and show that the Union has no money to compensate for the Kandir Law. The cut of $ 30 billion of the Budget would be a test.

Drawing. The new proposal being drafted for the Social Fund will pick up part of the Union's revenue from the exploitation of the pre-salt to share with the States. As oil production is going to increase a lot, even with the auction of excess barrels from the onerous assignment, they will earn a recurring revenue for more than 30 years.

The impasse surrounding the issue is that states want new cash in the box to face the financial crisis in 2019 and that division will only happen in 2020 after a change in pre-salt legislation. It is that the resources of the fund can not be shared now because, under the current legislation, the division would bring negative fiscal impact on the public accounts, since they have to be accounted as primary expense.

Deputy Silvio Costa Filho (PRB-PE), president of the Joint Parliamentary Front in Defense of the New Federative Pact, presented to the mayor of the Chamber, Rodrigo Maia (DEM-RJ), a priority agenda for municipalities, with a request for a vote of the project on the Kandir Law. Costa Filho believes that the project can be scheduled in up to 15 days. Leader of the Mato Grosso bench, MP and former Minister of Agriculture Neri Geller (PP-MT) said that the regulation of compensation of the Kandir Law is a demand of the ruralist group.

Maia, however, denied that the project is scheduled soon. Before the open crisis with the Executive, he said he has no way to debate "until there is a green light from the economic team."