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The government wants to use R$8 billion forgotten in bank accounts to offset tax losses. With the urgency approved, the dispute intensifies between the government and the Supreme Court over the destination of this money.
Did you know that billions of reais could be sitting in bank accounts without their owners even realizing it?
The federal government found a seemingly simple solution to cover the fiscal deficit: use around R$8 billion forgotten in banks.
But, as always, nothing is as simple as it seems. The plan, which seeks to offset the payroll tax relief, faces strong objections.
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And the protagonist of this dispute is none other than the Central Bank, who opposes the proposal in a surprising turn of events.
At the center of the controversy there is Bill 1.847/2024, which would allow the government to use the amounts left aside by Brazilians in bank accounts.
These resources, in the region of R$8 billion, would be used to cover the costs of reducing payroll taxes in 17 economic sectors.
According to Central Bank (BC), the measure is at odds with the official methodology for calculating fiscal results and may even be unconstitutional.
The clash between the government and the Central Bank
The BC was clear: it does not agree with the use of these forgotten resources as a form of tax compensation. For the monetary authority, these amounts should be considered as a “patrimonial adjustment”, which would reduce the Public Sector Net Debt (PSND), but could not be counted as primary revenue.
The methodology suggested by the government, according to the BC, would be in conflict with international standards of macroeconomic statistics, recognized by the International Monetary Fund (IMF)
According to Finance Minister, Fernando Haddad, the Central Bank will have the final say on whether or not forgotten resources can be counted towards the calculation of the primary result.
However, Haddad has already indicated that, in the past, a similar operation was carried out with resources from PIS / Pasep, generating a situation of divergence between the National treasure and the BC.
The proposal in question
The urgency for voting on the project was approved by the Chamber on September 9, 2024. According to the Ministry of Finance, the proposal could generate up to R$26 billion in compensatory revenue, although this amount covers less than half of the tax relief estimated between 2024 and 2027.
The resources forgotten in banks represent a significant portion of this proposal, with $ 8 billion already identified by the BC.
However, according to the bank itself, the accounting of these values would not directly impact the primary result, and their use may still be questioned in the Federal Supreme Court (STF).
Court deposits and asset adjustments
In addition to the forgotten banking resources, the government's proposal also covers the appropriation of judicial deposits that were not claimed or returned after the closure of the processes. These deposits could inject up to R$12 billion into the public coffers.
However, the BC also questions this measure, stating that these are “private resources”, which makes their incorporation a form of equity adjustment, with no direct effect on the primary result.
The Central Bank reinforced that the appropriation of these deposits does not resemble a traditional economic transaction between the public and private sectors, which further complicates its use as public revenue.
Past transactions and the PIS/Pasep case
To reinforce its point, the government cited a previous operation carried out during the government of Luiz Inácio Lula da Silva in 2023.
On that occasion, they were used $ 26 billion in resources of the PIS / Pasep, which generated similar discussions between the Central Bank and the National Treasury about how these amounts should be accounted for.
According to Haddad, the BC has been consistent in its stance, arguing that these resources cannot be considered as primary revenue.
The discussion now revolves around the adequacy of the proposal to what was decided by the STF, since the bill depends on how the Senate chose to structure the compensation for the exemption.
an uncertain future
Despite the disagreements, the government appears determined to move forward with the proposal, while the Central Bank insists that the operation must follow international tax accounting standards.
It remains to be seen whether the project, once approved, will be accepted by the STF and whether the forgotten resources can be fully used to cover the fiscal deficit.
With an estimated R$8 billion available in banks, the government could be close to a solution to its fiscal difficulties.
However, the clash with the Central Bank and the legal issues surrounding the proposal make the future of this measure uncertain. Will this bold maneuver be successful, or will the Supreme Court end up blocking the use of these resources?
And you, did you know that billions of forgotten reais can be used in this way by the government? How do you think Brazil should deal with this situation?
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