Brazilian Congress Wields Unprecedented Budgetary Power, Surpassing OECD Nations

A groundbreaking study reveals the Brazilian Congress’s exceptional control over the national budget. This power surpasses that of legislatures in 11 OECD countries.

Researchers Marcos Mendes from Insper and Hélio Tollini, a former federal budget secretary, conducted the study. The study shows that Brazilian lawmakers allocated R$ 131.7 billion ($23.1 billion) in parliamentary amendments from 2021 to now.

This amount is 87% higher than the previous four-year period. It demonstrates the growing influence of Congress over budget resources.

The researchers trace this trend back to 2015. That year, Congress passed a constitutional amendment making certain individual amendments mandatory.

Today, these amendments represent 24% of the government’s discretionary spending. This percentage is more than double that of Germany, the next highest at 9%.

Nearly a third of the R$ 131.7 billion comes from rapporteur and committee amendments. These types make it difficult to identify who proposed the spending.

Brazil’s “Secret Budget” and Legislative Control

In August, Supreme Court Justice Flávio Dino acknowledged that Congress had not ended the “Secret Budget” practice. The Chamber of Deputies recently approved a bill to address Dino’s concerns.

However, transparency advocates argue it falls short. The bill does not set clear guidelines for documenting amendment decisions. It also increases the amendment budget to R$ 50.5 billion ($8.86 billion) for the coming year.

The study highlights unique aspects of Brazil’s budgetary process. Brazil is the only country where the legislature intervenes in budget execution after its approval.

In addition, this occurs through committee amendments. The researchers compared Brazil with countries like Mexico, Chile, the United States, and several European nations.

In most OECD countries, parliaments discuss national priorities and oversee budget execution. They do not directly interfere in budget creation or execution.

Canada and Australia don’t even allow amendments. Only Brazil and the U.S. permit amendments without executive approval.

Hélio Tollini points out three unique features of Brazil‘s system. Each lawmaker has a quota for amendments. The executive must reserve funds for amendments in advance. The legislature can intervene during budget execution.

However, these practices are absent in other studied countries. The study employed a standardized questionnaire sent to experts in each country.

The researchers conducted online interviews and reviewed available literature to gather comprehensive data. This approach ensured a thorough comparison of budgetary processes across nations.

This research sheds light on Brazil’s exceptional budgetary practices. It raises questions about the balance of power between the executive and legislative branches in fiscal matters.

The findings may prompt discussions on potential reforms to align with international norms while maintaining democratic oversight.

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