Guedes says that politics works with public money to serve those who voted for deputies and senators

Minister Paulo Guedes (Economy) said this Friday (17) that it is understandable that deputies and senators want a slice of the federal budget to meet their interests in electoral bases.

According to the minister, “it is not inconceivable” that lawmakers ask for R$ 15 billion to direct to their strongholds. He said the money “is going in favor of the reforms” of the Jair Bolsonaro (PL) government.

At a press conference, Guedes was answering a question about the overthrow of the veto of the R$ 5.7 billion electoral fund, also this Friday, when he started to defend the allocation of funds by parliamentarians.

“Do you think politics works without [que] who has the vote has the ability to pull money and resources to meet those who voted for him?”, he asked.

He admitted that the money will be needed by government ministries, but he added that lawmakers resent the little control they have over the budget, largely committed to mandatory spending.

Since the 2018 election campaign, Guedes has been an advocate of what he calls the decentralization of resources, with greater legislative control over expenditures.

However, the growing use of public resources to supply the Electoral Fund and the amendments -especially those of the rapporteur- are at the center of the discussion on the appropriation of the Budget by Congress, in political negotiations to meet the interests of Planalto.

Specialists also point out the lack of transparency and the low efficiency of these expenses, given the fragmentation of policies.

“When Congress asked for this taxing budget and it was used against the Bolsonaro government, everyone thought it was good. Now that the government has had parliamentary support and this money is going in favor of the Bolsonaro government’s reforms, everyone is saying it is a crime, which is secret, which is wrong,” Guedes said.

The minister admitted that he would like to have greater fiscal control over these resources, but said he needs to “understand that the policy requires resources”.

“Today you have a huge fight for R$ 15 billion as if it were the biggest money in the world, as if it were an inconceivable deal, the policy asking for R$ 15 billion. It’s not inconceivable, it’s understandable,” he said.

The value cited by the minister is the approximate level of the rapporteur’s amendments, used by the government to contemplate allies with greater allocation of resources in the Budget. This year, they add up to R$ 16.8 billion, and Congress intends to stamp a similar amount for 2022.

The rapporteur’s amendments are complementary to individual and bench tax amendments, which add up to another R$ 16 billion, but distributed proportionally among parliamentarians, regardless of the party.

These instruments are used to finance works, purchase of machinery or other expenses in congressmen’s electoral strongholds.

The Electoral Fund, supplied with public money, is used to pay for campaign expenses.

In July, Congress approved the LDO (Budget Guidelines Law) with a forecast of R$ 5.7 billion in resources for the fund.

Bolsonaro vetoed the device and, in August, sent a budget proposal providing for R$ 2.1 billion for the campaigns. The veto was overturned this Friday.

“If the president vetoed it, Congress overturned the veto, it’s politics. Politics really makes noise,” said Guedes.