Congress approves supplementary credit that guarantees resources for the 2019/2020 Crop Plan

The National Congress approved on Tuesday, June 11, in a joint session, the supplementary credit project in which the Executive requests authorization to pay off, through credit operations, current expenses of R$ 248,9 billion (PLN 4 /19). The text was unanimously approved by the Chamber of Deputies and the Senate and is subject to presidential approval. 

With the approval of the proposal, the R$ 10 billion foreseen for the equalization of financing for the 2019/2020 Harvest Plan, which will be announced in the week of June 17th to 21st, are guaranteed.

Minister Tereza Cristina (Agriculture, Livestock and Supply) attended the Congress session that approved PLN 4 and met earlier with the Parliamentary Agricultural Front to ask for the project's approval. According to her, the Harvest Plan scheduled for 2019/2020 will offer new tools for accessing credit for medium and large producers.

The report by deputy Hildo Rocha (MDB-MA) promoted an adjustment to increase the transfer to the National Program for Strengthening Family Agriculture (Pronaf) by R$80 million, canceling the same amount in subsidies.

Golden Rule

The Federal Constitution prohibits the carrying out of credit operations that exceed capital expenditures. This “golden rule” can only be circumvented through supplementary or special credits with a specific purpose and approved by Congress by an absolute majority.

PLN 4/19 seeks this authorization, as expenses of R$248,9 billion are foreseen in the Budget for 2019 and are mandatory. In addition to the Safra Plan, most of the expenses involved correspond to social security benefits, such as pensions and retirements, but Bolsa Família, Continuous Payment Benefit (BPC), among other items, are included.