The point of contention between Congress and the Executive is the budget allocation for projects, programs, and works. There is a fight for resources that leaves the government and lawmakers on opposite sides. The tension has increased due to the demand from the Legislative for a clear payment schedule for the implementation of the so-called “immersive budget.” This new budget is the result of the parliamentary assumption of the Executive’s responsibilities and has even led to the suggestion of a new plebiscite to decide between a presidential or parliamentary system of government.
Regarding the economic agenda, agreements have been achieved by the Congress on important measures, such as the approval of the provisional measure for subsidies, the taxation of profits and dividends of entities controlled abroad, and the regulatory framework for fixed-odds sports betting. The reforms of the fiscal frameworks and the tax system were also approved and integrated into the Constitution.
The approval of these proposals by Congress shows that the government is moving in the right direction. The reform of the tax system is seen as a historic victory achieved through dialogue and represents the strength of Brazilian democracy. Additionally, there is the expectation of an increase in revenue of nearly $60 billion.
The year of 2023 was a great success from a political perspective. The process of approving the proposed legislative changes has demonstrated that the Congress is playing an important role in shaping the future of the country. The approval of the tax reforms, the maintenance of the deficit zero target in the Budget Guidelines Law, and the approval of laws and measures that aim to increase federal revenues, have shown that important decisions have been made in line with the interests of the Brazilian people. The new laws and measures will have a positive and long-lasting impact on the Brazilian economy. There has been a strong commitment from both the Congress and the government to meet the country’s needs, and it is fair to say that, by the end of this legislative year, the government has accomplished much of what it set out to do.
