Guedes stated that the risk of committing a crime of fiscal responsibility prevents the government from acting more quickly in actions to face the coronavirus crisis.
Paulo Guedes, in a video conference with members of the National Front of Mayors, stated that because of the current need to increase spending to combat the coronavirus, the LRF worries the government due to the risk of committing a crime of responsibility due to possible violation of points of the law.
This Sunday (29), the Minister of Economy defended the approval by the National Congress of an emergency law. This would allow, for example, to make the Fiscal Responsibility Law (LRF) more flexible in cases of calamity. Such as the current pandemic scenario that Brazil is facing due to COVID-19.
“What is our problem today? It’s the LRF, fiscal pedaling, impeachment, that kind of thing. There has to be some kind of clause that, in the event of a calamity, suspends and allows us to act quickly. I have several secretaries who say they cannot sign these acts because they say that if they do, they will be arrested and then there will be impeachment proceedings against the president,” he said. “We need an emergency law. We need to work,” he said.
More than one source at the Ministry of Economy stated that the movement is already in preparation for sending to Congress what would be a proposed amendment to the constitution (PEC). This, in turn, would authorize the expansion of the government's spending limit during the new coronavirus pandemic.
Another defense put forward by the minister was that states and municipalities should not be required to comply with the primary result this year.
“Just as happened with the federal government, the same thing must happen for states and municipalities. Suspend the obligation to comply with the primary result,” he said.
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