Lei Complementar nº 101, de 4 de maio de 2000 — Estabelece normas de finanças públicas voltadas para a responsabilidade na gestão fiscal (Lei de Responsabilidade Fiscal) (Complementary Law No. 101 of 4 May 2000 — public finance rules for fiscal responsibility (Fiscal Responsibility Law))

English translation of the Portuguese text from planalto.gov.br (the Portuguese text is the official one). Retrieved 2026-10-26.

Presidency of the Republic

Civil House

Deputy Office for Legal Affairs

COMPLEMENTARY LAW No. 101, OF 4 MAY 2000

Veto Message

(See ADI 2238)

Establishes public finance rules aimed at fiscal management responsibility and provides other measures.

THE PRESIDENT OF THE REPUBLIC I make known that the National Congress decrees and I sanction the following Complementary Law:

CHAPTER I

PRELIMINARY PROVISIONS

Art. 1

This Complementary Law establishes public finance rules aimed at fiscal management responsibility, supported by Chapter II of Title VI of the Constitution.

§ 1 Fiscal management responsibility presupposes planned and transparent action, in which risks are prevented and deviations capable of affecting the balance of public accounts are corrected, through compliance with result targets between revenues and expenses and obedience to limits and conditions regarding revenue waivers, generation of personnel expenses, social security and other expenses, consolidated and securities debt, credit operations, including those for revenue anticipation, granting of guarantees and registration in Restos a Pagar.

§ 2 The provisions of this Complementary Law bind the Union, the States, the Federal District and the Municipalities.

§ 3 In the references:

I - to the Union, the States, the Federal District and the Municipalities, are included:

a)

the Executive Branch, the Legislative Branch, including the Courts of Accounts, the Judicial Branch and the Public Prosecution Service;

b)

their respective direct administrations, funds, autarchies, foundations and dependent state-owned enterprises;

II - to States, the Federal District is considered included;

III - to Courts of Accounts are included: Federal Court of Accounts, State Court of Accounts and, where applicable, Municipal Court of Accounts and Municipal Court of Accounts.

Art. 2

For the purposes of this Complementary Law, it is understood as:

I - federative entity: the Union, each State, the Federal District and each Municipality;

II - controlled company: a company whose majority of voting share capital belongs, directly or indirectly, to a federative entity;

III - dependent state-owned enterprise: a controlled company that receives from the controlling entity financial resources for payment of personnel expenses or general operating costs or capital, excluding, in the latter case, those arising from an increase in shareholding; (Regulation)

IV - net current revenue: the sum of tax revenues, contributions, patrimonial, industrial, agricultural, service, current transfers

and other current revenues, deducting:

a)

in the Union, the amounts transferred to the States and Municipalities by constitutional or legal determination, and the contributions mentioned in subparagraph a of item I and item II of art. 195, and in art. 239 of the Constitution;

a) in the Union, the amounts transferred to the States, Federal District and Municipalities by constitutional or legal determination, including the amounts delivered to the States and the Federal District through the Fund established by art. 159-A of the Constitution, and the contributions mentioned in subparagraph “a” of item I and item II of art. 195, and in art. 239 of the Constitution;

(Redaction given by Complementary Law No. 214, of 2025)

Production of effects

b)

in the States, the portions delivered to the Municipalities by constitutional determination;

c)

in the Union, in the States and in the Municipalities, the contribution of civil servants for the funding of their pension and social assistance system and the revenues arising from the financial compensation mentioned in § 9 of art. 201 of the Constitution.

§ 1 The amounts paid and received as a result of Complementary Law No. 87, of 13 September 1996, and the fund provided for in art. 60 of the Act of Transitional Constitutional Provisions shall be computed in the calculation of net current revenue.

§ 2 The resources received from the Union to meet the expenses referred to in item V of § 1 of art. 19 shall not be considered in the net current revenue of the Federal District and the States of Amapá and Roraima.

§ 3 Net current revenue shall be calculated by adding the revenues collected in the reference month and in the eleven previous ones, excluding duplications.

CHAPTER II

ON PLANNING

Section I

On the Multiannual Plan

Art. 3

(VETOED)

Section II

On the Budget Guidelines Law

Art. 4

The budget guidelines law shall comply with the provisions of § 2 of art. 165 of the Constitution and:

I - shall also provide for:

a) balance between revenues and expenses;

b) criteria and form of commitment limitation, to be effected in the hypotheses provided for in subparagraph b of item II of this article, in art. 9 and in item II of § 1 of art. 31;

c)

(VETOED)

d)

(VETOED)

e) rules relating to cost control and evaluation of the results of programs financed with budget resources;

f) other conditions and requirements for transfers of resources to public and private entities;

II -

(VETOED)

III -

(VETOED)

§ 1 The Fiscal Targets Annex shall integrate the budget guidelines bill, in which annual targets shall be established, in current and constant values, related to revenues, expenses, nominal and primary results and the amount of public debt, for the fiscal year to which they refer and for the following two. (See ADI 7064)

§ 2 The Annex shall also contain:

I - evaluation of compliance with the targets related to the previous year;

II - statement of the annual targets, supported by calculation memory and methodology that justify the intended results, comparing them with those set in the three previous fiscal years, and evidencing their consistency with the premises and objectives of the national economic policy;

III - evolution of net equity, also in the last three fiscal years, highlighting the origin and application of resources obtained from the disposal of assets;

IV - evaluation of the financial and actuarial situation:

a) of the general social security regimes and the specific regime of public servants and the Worker Support Fund;

b) of the other public funds and state programs of an actuarial nature;

V - statement of the estimate and compensation of revenue waivers and the expansion margin of mandatory expenses of a continuing nature.

VI – demonstrative table of the calculation of the primary result target referred to in § 1 of this article, which evidences the main aggregates of revenues and expenses, the results, comparing them with the values programmed for the current fiscal year and those realized in the 2 (two) previous fiscal years, and the estimates for the fiscal year to which the budget guidelines law refers and for the subsequent ones. (Included by Complementary Law No. 200, of 2023)

Effectiveness

§ 3 The budget guidelines law shall contain a Fiscal Risks Annex, where contingent liabilities and other risks capable of affecting public accounts shall be evaluated, informing the measures to be taken, should they materialize.

§ 4 The message that forwards the Union's project shall present, in a specific annex, the objectives of monetary, credit and exchange rate policies, as well as the parameters and projections for their main aggregates and variables, and also the inflation targets, for the subsequent fiscal year.

§ 5 In the case of the Union, the Fiscal Targets Annex of the budget guidelines bill shall also contain:

(Included by Complementary Law No. 200, of 2023)

Effectiveness

I - the annual targets for the fiscal year to which it refers and for the 3 (three) following ones, with the objective of guaranteeing sustainability to the trajectory of the public debt;

(Included by Complementary Law No. 200, of 2023)

Effectiveness

II – the medium-term fiscal framework, with projections for the main fiscal aggregates that compose the reference scenarios, distinguishing primary expenses from financial ones and mandatory from discretionary ones;

(Included by Complementary Law No. 200, of 2023)

Effectiveness

III - the expected effect and compatibility, in the period of 10 (ten) years, of compliance with the primary result targets on the convergence trajectory of the public debt, evidencing the level of fiscal results consistent with the stabilization of the Gross General Government Debt (GGGD) in relation to the Gross Domestic Product (GDP);

(Included by Complementary Law No. 200, of 2023)

Effectiveness

IV - the tolerance intervals for verifying compliance with the annual primary result targets, converted into current values, of minus 0.25 p.p. (twenty-five hundredths of a percentage point) and plus 0.25 p.p. (twenty-five hundredths of a percentage point) of the GDP forecast in the respective budget guidelines bill;

(Included by Complementary Law No. 200, of 2023)

Effectiveness

V - the budgetary limits and parameters of the Powers and autonomous bodies compatible with the provisions established in the complementary law provided for in item VIII of the

caput of art. 163 of the Federal Constitution and in art. 6 of Constitutional Amendment No. 126, of 21 December 2022 ;

(Included by Complementary Law No. 200, of 2023)

Effectiveness

VI – the estimate of the fiscal impact, when applicable, of the recommendations resulting from the evaluation of public policies provided for in § 16 of art. 37 of the Federal Constitution .

(Included by Complementary Law No. 200, of 2023)

Effectiveness

§ 6 The States, the Federal District and the Municipalities may adopt, totally or partially, as applicable, the provisions of § 5 of this article.

(Included by Complementary Law No. 200, of 2023)

Effectiveness

§ 7 The budget guidelines law may not provide for the exclusion of any primary expenses from the calculation of the primary result target of the fiscal and social security budgets.

(Included by Complementary Law No. 200, of 2023)

Effectiveness

Section III

Of the Annual Budget Law

Art. 5 The annual budget bill, prepared in a manner compatible with the multi-year plan, with the budget guidelines law and with the norms of this Complementary Law:

I - shall contain, in an annex, a statement of the compatibility of the budget programming with the objectives and targets contained in the document referred to in § 1 of art. 4 ;

II - shall be accompanied by the document referred to in § 6 of art. 165 of the Constitution , as well as by the compensation measures for revenue waivers and the increase in mandatory expenses of a continuing nature;

III - shall contain a contingency reserve, whose form of use and amount, defined based on the net current revenue, shall be established in the budget guidelines law, destined for:

a)

(VETOED)

b) meeting contingent liabilities and other unforeseen fiscal risks and events.

IV - shall contain the global estimate of incentives and benefits of a tax, financial and credit nature and for individuals and legal entities; and

(Included by Complementary Law No. 224, of 2025)

Production of effects

V - shall contain, in an annex, the estimate of financial expenses and mandatory and discretionary primary expenses, in the fiscal year of its preparation and for the 2 (two) subsequent fiscal years.

(Included by Complementary Law No. 224, of 2025)

Production of effects

§ 1 All expenses related to public debt, whether securities-based or contractual, and the revenues that will meet them, shall be included in the annual budget law.

§ 2 The refinancing of public debt shall be included separately in the budget law and in additional credit laws.

§ 3 The monetary updating of the principal of the refinanced securities-based debt may not exceed the variation of the price index provided for in the budget guidelines law, or in specific legislation.

§ 4 It is prohibited to allocate in the budget law credit with imprecise purpose or with unlimited appropriation.

§ 5 The budget law shall not allocate appropriation for investment with a duration exceeding one fiscal year that is not provided for in the multi-year plan or in a law authorizing its inclusion, as set forth in § 1 of art. 167 of the Constitution.

§ 6 The expenses of the Union shall include, and shall be included in the budget law, those of the Central Bank of Brazil related to personnel and social charges, administrative costs, including those intended for benefits and assistance to public servants, and investments.

§ 7

(VETOED)

§ 8 The estimates referred to in item IV of the caput of this article shall be organized in specific annexes with an estimate of the waivers in the reference year and in the 2 (two) subsequent years.

(Included by Complementary Law No. 224, of 2025)

Production of effects

Art. 6

(VETOED)

Art. 7

The result of the Central Bank of Brazil, determined after the constitution or reversal of reserves, constitutes revenue of the National Treasury, and shall be transferred by the tenth business day following the approval of the semiannual balance sheets.

§ 1 The negative result shall constitute an obligation of the Treasury to the Central Bank of Brazil and shall be allocated in a specific appropriation in the budget.

§ 2 The impact and fiscal cost of the operations carried out by the Central Bank of Brazil shall be demonstrated quarterly, in accordance with the terms set forth in the budget guidelines law of the Union.

§ 3 The quarterly balance sheets of the Central Bank of Brazil shall contain explanatory notes on the costs of remunerating the available funds of the National Treasury and maintaining foreign exchange reserves and the profitability of its securities portfolio, highlighting those issued by the Union.

Section IV

On Budget Execution and Compliance with Targets

Art. 8

Within thirty days after the publication of the budgets, in accordance with the terms set forth in the budget guidelines law and observing the provisions of subitem c of item I of art. 4, the Executive Branch shall establish the financial programming and the monthly schedule of disbursement execution. (See Decree No. 4,959, of 2004)

(See Decree No. 5,356, of 2005)

Sole paragraph. Funds legally earmarked for a specific purpose shall be used exclusively to meet the object of their earmarking, even if in a fiscal year different from that in which the inflow occurs.

Art. 9

If it is verified, at the end of a two-month period, that the realization of revenue may not allow compliance with the primary or nominal result targets established in the Fiscal Targets Annex, the Branches and the Public Prosecution Service shall promote, by their own act and in the necessary amounts, within the following thirty days, limitation of commitment and financial movement, according to the criteria established by the budget guidelines law.

§ 1 In the case of restoration of the forecast revenue, even if partial, the recomposition of the appropriations whose commitments were limited shall occur proportionally to the reductions made.

§ 2 Expenses that constitute constitutional and legal obligations of the entity, including those intended for the payment of debt service, and those excepted by the budget guidelines law, shall not be subject to limitation.

§ 2 Expenses that constitute constitutional and legal obligations of the entity, including those intended for the payment of debt service, those related to innovation and scientific and technological development funded by a fund created for such purpose, and those excepted by the budget guidelines law, shall not be subject to limitation. (Wording given by Complementary Law No. 177, of 2021)

§ 3 If the Legislative and Judicial Branches and the Public Prosecution Service do not promote the limitation within the period established in the caput, the Executive Branch is authorized to limit the financial amounts according to the criteria established by the budget guidelines law.

(See ADI 2238)

§ 4 By the end of the months of May, September and February, the Executive Branch shall demonstrate and evaluate compliance with the fiscal targets of each four-month period, in a public hearing at the committee referred to in § 1 of art. 166 of the Constitution or equivalent in the state and municipal Legislative Houses.

§ 4 By the end of the months of May, September and February, the Minister or State Secretary of Finance shall demonstrate and evaluate compliance with the fiscal targets of each four-month period and the debt trajectory, in a public hearing at the committee referred to in § 1 of art. 166 of the Federal Constitution or jointly with the thematic committees of the National Congress or equivalent in the state and municipal Legislative Houses.

(Wording given by Complementary Law No. 200, of 2023)

Effectiveness

§ 5 Within ninety days after the end of each semester, the Central Bank of Brazil shall present, in a joint meeting of the relevant thematic committees of the National Congress, an evaluation of compliance with the objectives and targets of monetary, credit and exchange rate policies, evidencing the impact and fiscal cost of its operations and the results demonstrated in the balance sheets.

Art. 10.

Budget and financial execution shall identify the beneficiaries of payment of judicial sentences, through an accounting and financial administration system, for the purpose of observing the chronological order determined in art. 100 of the Constitution.

CHAPTER III

ON PUBLIC REVENUE

Section I

On Forecasting and Collection

Art. 11.

The institution, forecasting and effective collection of all taxes within the constitutional competence of the Federative entity constitute essential requirements of responsibility in fiscal management.

Sole paragraph. The making of voluntary transfers to the entity that does not observe the provisions of the caput, with regard to taxes, is prohibited.

Art. 12.

The revenue forecasts shall observe the technical and legal rules, shall consider the effects of changes in legislation, of variations in the price index, of economic growth or of any other relevant factor and shall be accompanied by a statement of their evolution over the last three years, of the projection for the two following the one to which they refer, and of the calculation methodology and assumptions used .

§ 1 Re-estimation of revenue by the Legislative Power shall only be admitted if error or omission of a technical or legal nature is proven.

§ 2 The amount forecast for revenues from credit operations may not be higher than that of capital expenditures contained in the budget bill. (See ADI 2238)

§ 3 The Executive Power of each entity shall make available to the other Powers and to the Public Prosecution Service, at least thirty days before the final deadline for submitting their budget proposals, the studies and estimates of revenues for the subsequent fiscal year, including current net revenue, and the respective calculation memoranda.

Art. 13.

Within the period provided for in art. 8, the forecast revenues shall be broken down, by the Executive Power, into two-month collection targets, with the specification, separately, where applicable, of the measures to combat evasion and tax avoidance, of the quantity and amounts of lawsuits filed for the collection of active debt, as well as of the evolution of the amount of tax credits eligible for administrative collection.

Section II

On Waiver of Revenue

Art. 14.

The granting or expansion of an incentive or benefit of a tax nature resulting in waiver of revenue shall be accompanied by an estimate of the budgetary-financial impact in the fiscal year in which it is to begin to be effective and in the two following ones, shall comply with the provisions of the budget guidelines law and at least one of the following conditions: (See Provisional Measure No. 2,159, of 2001)

(See Law No. 10,276, of 2001)

(See ADI 6357)

Art. 14. The granting, expansion or extension of an incentive or benefit of a tax nature resulting in waiver of revenue shall be accompanied by an estimate of the budgetary-financial impact in the fiscal year in which it is to begin to be effective and in the 2 (two) subsequent fiscal years and shall comply with the provisions of the budget guidelines law and at least 1 (one) of the following conditions:

(Text given by Complementary Law No. 224, of 2025)

Production of effects

(See Law No. 10,276, of 2001)

(See ADI 6357)

I - demonstration by the proponent that the waiver was considered in the revenue estimate of the budget law, in the form of art. 12, and that it will not affect the fiscal result targets provided for in the annex specific to the budget guidelines law;

II - be accompanied by compensation measures, in the period mentioned in the caput, by means of revenue increase, arising from the raising of rates, expansion of the calculation basis, increase or creation of a tax or contribution.

§ 1 The waiver comprises amnesty, remission, subsidy, presumed credit, granting of exemption on a non-general basis, change of rate or modification of the calculation basis that implies discriminatory reduction of taxes or contributions, and other benefits that correspond to differentiated treatment.

§ 2 If the act of granting or expanding the incentive or benefit dealt with in the caput of this article results from the condition contained in item II, the benefit shall only enter into force when the measures referred to in the mentioned item are implemented.

§ 3 The provisions of this article do not apply:

I - to changes in the rates of the taxes provided for in items I, II, IV and V of art. 153 of the Constitution, in the form of its § 1;

II - to the cancellation of a debt whose amount is lower than the respective collection costs.

Art. 14-A. The legislative proposition that deals with the granting, expansion or extension of any incentive or benefit of a tax nature that implies waiver of revenue and whose beneficiary is a legal entity shall be accompanied by:

(Included by Complementary Law No. 224, of 2025)

Production of effects

I - estimate of the number of beneficiaries;

(Included by Complementary Law No. 224, of 2025)

Production of effects

II - term of validity, which may not exceed 5 (five) years;

(Included by Complementary Law No. 224, of 2025)

Production of effects

III - performance targets, which shall be objective and quantifiable, in economic, social and environmental dimensions;

(Included by Complementary Law No. 224, of 2025)

Production of effects

IV - expected impact on the reduction of regional inequalities, if applicable; and

(Included by Complementary Law No. 224, of 2025)

Production of effects

V - mechanisms of transparency and of monitoring and evaluation of results in relation to the targets dealt with in item III of this caput.

(Included by Complementary Law No. 224, of 2025)

Production of effects

§ 1 The term dealt with in item II of the caput may exceed 5 (five) years in the case of tax benefits associated with long-term investments, under the terms established in regulation and provided that the legislative proposition is accompanied by an estimate of the investments during the period in which the benefit is in force, without prejudice to other targets provided for in the form of item III of the caput of this article.

(Included by Complementary Law No. 224, of 2025)

Production of effects

§ 2 The extension of tax benefits whose result targets defined in the form of item III of the caput of this article have not been achieved or whose result evaluation has not been carried out is prohibited.

(Included by Complementary Law No. 224, of 2025)

Production of effects

§ 3 In the hypothesis addressed in § 1 of this article, the validity of the tax benefit is conditioned upon the periodic performance of evaluation and the achievement of result targets defined as per item III of the caput of this article, every 5 (five) years.

(Included by Complementary Law No. 224, of 2025)

Production of effects

§ 4 The evaluation of results in relation to the targets addressed in item III of the caput of this article shall be carried out by a multidisciplinary body of the Executive Branch specialized in the monitoring and evaluation of public policies, as per regulation.

(Included by Complementary Law No. 224, of 2025)

Production of effects

§ 5 The provisions of this article:

(Included by Complementary Law No. 224, of 2025)

Production of effects

I - also applies to legislative proposals that grant deferral of taxes, except for deferral that implies postponement of tax payment:

(Included by Complementary Law No. 224, of 2025)

Production of effects

a) for a period equal to or less than 60 (sixty) months, for installment payment, counted from the one in which the tax would be due; or

(Included by Complementary Law No. 224, of 2025)

Production of effects

b) that, even if granted for a period longer than that provided in subitem “a” of this item, covers all taxpayers of a certain region and is intended to combat the effects of an emergency situation or state of public calamity recognized as per legislation; and

(Included by Complementary Law No. 224, of 2025)

Production of effects

II - does not apply to changes in the rates of the taxes provided in items I, II, IV and V of the caput of art. 153 of the Federal Constitution, as per § 1 of said article.

(Included by Complementary Law No. 224, of 2025)

Production of effects

CHAPTER IV

ON PUBLIC EXPENDITURE

Section I

On the Generation of Expenditure

Art. 15.

The generation of expenditure or assumption of obligation that does not comply with the provisions of arts. 16 and 17 shall be considered unauthorized, irregular and harmful to the public patrimony.

Art. 16.

The creation, expansion or improvement of government action that entails an increase in expenditure shall be accompanied by:

(See ADI 6357)

I - estimate of the budgetary-financial impact in the fiscal year in which it is to take effect and in the two subsequent ones;

II - declaration by the expenditure ordering officer that the increase has budgetary and financial adequacy with the annual budget law and compatibility with the multi-year plan and with the budget guidelines law.

§ 1 For the purposes of this Complementary Law, it is considered:

I - adequate with the annual budget law, the expenditure that is the object of specific and sufficient allocation, or that is covered by a generic credit, so that, adding all expenditures of the same type, carried out and to be carried out, provided in the work program, the limits established for the fiscal year are not exceeded;

II - compatible with the multi-year plan and the budget guidelines law, the expenditure that conforms to the guidelines, objectives, priorities and targets provided in these instruments and does not infringe any of their provisions.

§ 2 The estimate addressed in item I of the caput shall be accompanied by the assumptions and calculation methodology used.

§ 3 Expenditure considered irrelevant is excepted from the provisions of this article, as provided in the budget guidelines law.

§ 4 The rules of the caput constitute a prior condition for:

I - commitment and bidding for services, supply of goods or execution of works;

II - expropriation of urban properties referred to in § 3

of art. 182 of the Constitution.

Subsection I

On Mandatory Expenditure of a Continuing Nature

Art. 17.

Current expenditure derived from law, provisional measure or normative administrative act that establishes for the entity the legal obligation of its execution for a period exceeding two fiscal years is considered mandatory of a continuing nature.

(See ADI 6357)

§ 1 The acts that create or increase expenditure addressed in the caput shall be instructed with the estimate provided in item I of art. 16 and demonstrate the origin of the resources for its funding.

(See Complementary Law No. 176, of 2020)

§ 2 For the purpose of complying with § 1, the act shall be accompanied by proof that the created or increased expenditure will not affect the fiscal result targets provided in the annex referred to in § 1 of art. 4, and its financial effects, in subsequent periods, must be offset by permanent increase in revenue or permanent reduction in expenditure.

(See Complementary Law No. 176, of 2020)

§ 3 For the purpose of § 2, permanent increase in revenue is considered that arising from the raising of rates, expansion of the calculation basis, increase or creation of tax or contribution.

(See Complementary Law No. 176, of 2020)

§ 4 The proof referred to in § 2, presented by the proponent, shall contain the assumptions and calculation methodology used, without prejudice to the examination of compatibility of the expenditure with the other rules of the multi-year plan and the budget guidelines law.

(See Complementary Law No. 176, of 2020)

§ 5 The expenditure addressed in this article shall not be executed before the implementation of the measures referred to in § 2, which shall integrate the instrument that creates or increases it.

(See Complementary Law No. 176, of 2020)

§ 6 The provisions of § 1 do not apply to expenditures destined for debt service nor to the readjustment of personnel remuneration addressed in item X of art. 37 of the Constitution.

§ 7 The extension of expenditure created for a determined period is considered an increase in expenditure.

Section II

On Personnel Expenditures

Subsection I

Definitions and Limits

Art. 18.

For the purposes of this Complementary Law, total personnel expenditure is understood as: the sum of the expenses of the entity of the Federation with active employees, inactive employees and pensioners, related to elective mandates, positions, functions or employments, civil, military and members of a Branch, with any types of remuneration, such as salaries and benefits, fixed and variable, subsidies, retirement proceeds, military retirements and pensions, including additional payments, bonuses, overtime and personal benefits of any nature, as well as social charges and contributions collected by the entity to the social security entities.

§ 1 The amounts of contracts for the outsourcing of labor that refer to the replacement of public servants and employees shall be accounted for as "Other Personnel Expenses".

§ 2

The total personnel expenditure shall be calculated by adding the expenditure incurred in the reference month to those of the eleven immediately preceding months, adopting the accrual basis.

§ 2 The total personnel expenditure shall be calculated by adding the expenditure incurred in the reference month to those of the 11 (eleven) immediately preceding months, adopting the accrual basis, regardless of commitment.

(Text given by Complementary Law No. 178, of 2021)

§ 3 For the calculation of total personnel expenditure, the gross remuneration of the servant shall be observed, without any deduction or withholding, except for the reduction to comply with the provisions of

art. 37, item XI, of the Federal Constitution.

(Included by Complementary Law No. 178, of 2021)

Art. 19.

For the purposes of the provisions of the

caput of art. 169 of the Constitution, the total personnel expenditure, in each calculation period and in each entity of the Federation, may not exceed the percentages of net current revenue, listed below:

I - Union: 50% (fifty percent);

II - States: 60% (sixty percent);

III - Municipalities: 60% (sixty percent).

§ 1 In verifying compliance with the limits defined in this article, the following expenses shall not be computed:

I - severance pay for dismissal of servants or employees;

II - related to incentives for voluntary dismissal;

III - derived from the application of the provisions of item II of § 6 of art. 57 of the Constitution;

IV - arising from judicial decision and from the competence of a period prior to that of the calculation referred to in § 2 of art. 18;

V - with personnel, of the Federal District and of the States of Amapá and Roraima, funded with resources transferred by the Union in the form of items XIII and XIV of art. 21 of the Constitution and of art. 31 of Constitutional Amendment No. 19;

VI - with inactive employees, even if through a specific fund, funded by resources from:

VI - with inactive employees and pensioners, even if paid through a single managing unit or fund provided for in

art. 249 of the Federal Constitution, as to the portion funded by resources from:

(Text given by Complementary Law No. 178, of 2021)

a) from the collection of contributions from the insured;

b) from the financial compensation referred to in § 9 of art. 201 of the Constitution;

c) from the other revenues directly collected by a fund linked to such purpose, including the proceeds from the sale of assets, rights and assets, as well as its financial surplus.

c) from transfers intended to promote the actuarial balance of the social security regime, in the form defined by the body of the federal Executive Branch responsible for the guidance, supervision and monitoring of the own social security regimes of public servants.

(Text given by Complementary Law No. 178, of 2021)

§ 2 Subject to the provisions of item IV of § 1, personnel expenses arising from judicial sentences shall be included in the limit of the respective Branch or body referred to in art. 20.

§ 3 In verifying compliance with the limits defined in this article, the deduction of the portion funded with resources contributed to cover the financial deficit of the social security regimes is prohibited.

(Included by Complementary Law No. 178, of 2021)

Art. 20.

The distribution of the global limits of art. 19 may not exceed the following percentages:

I - in the federal sphere:

a) 2.5% (two point five percent) for the Legislative, including the Federal Court of Accounts;

b) 6% (six percent) for the Judiciary;

c) 40.9% (forty point nine percent) for the Executive, with 3% (three percent) highlighted for personnel expenses arising from the provisions of items XIII and XIV of art. 21 of the Constitution and art. 31 of Constitutional Amendment No. 19, distributed proportionally to the average of the expenses related to each of these provisions, in percentage of net current revenue, verified in the three financial years immediately prior to that of the publication of this Complementary Law; (See Decree No. 3.917, of 2001)

d) 0.6% (six tenths of a percent) for the Federal Public Prosecution Service;

II - in the state sphere:

a) 3% (three percent) for the Legislative, including the State Court of Accounts;

(See ADI 6533)

b) 6% (six percent) for the Judiciary;

(See ADI 6533)

c) 49% (forty-nine percent) for the Executive;

(See ADI 6533)

d) 2% (two percent) for the Public Prosecution Service of the States;

(See ADI 6533)

III - in the municipal sphere:

a) 6% (six percent) for the Legislative, including the Municipal Court of Accounts, when it exists;

b) 54% (fifty-four percent) for the Executive.

§ 1 In the Legislative and Judiciary Branches of each sphere, the limits shall be distributed among their bodies proportionally to the average of personnel expenses, in percentage of net current revenue, verified in the three financial years immediately prior to that of the publication of this Complementary Law.

(See ADI 6533)

§ 2 For the purposes of this article, the following is understood as a body:

I - the Public Prosecution Service;

II - in the Legislative Branch:

a) Federal, the respective Houses and the Federal Court of Accounts;

b) State, the Legislative Assembly and the Courts of Accounts;

c) of the Federal District, the Legislative Chamber and the Court of Accounts of the Federal District;

d) Municipal, the City Council and the Court of Accounts of the Municipality, when it exists;

III - in the Judiciary:

a) Federal, the courts referred to in art. 92 of the Constitution;

b) State, the Court of Justice and others, when they exist.

§ 3 The limits for personnel expenses of the Judiciary, borne by the Union by virtue of item XIII of art. 21 of the Constitution, shall be established by applying the rule of § 1.

§ 4 In the States where there is a Court of Accounts of the Municipalities, the percentages defined in subitems a and c of item II of the caput shall be, respectively, increased and reduced by 0.4% (four tenths of one percent).

§ 5 For the purposes provided in art. 168 of the Constitution, the delivery of financial resources corresponding to the total personnel expenses by Branch and body shall be the result of applying the percentages defined in this article, or those set in the budget guidelines law.

§ 6

(VETOED)

§ 7 The Branches and bodies referred to in this article shall ascertain, in a segregated manner for the application of the limits dealt with in this article, the entirety of personnel expenses of their respective inactive servants and pensioners, even if the funding of such expenses is borne by another Branch or body.

(Included by Complementary Law No. 178, of 2021)

Subsection II

On the Control of Total Personnel Expenses

Art. 21.

The act that causes an increase in personnel expenses and does not comply with:

I - the requirements of arts. 16 and 17 of this Complementary Law, and the provisions of item XIII of art. 37 and § 1 of art. 169 of the Constitution;

II - the legal limit of commitment applied to expenses with inactive personnel.

Sole paragraph. Also null and void is the act resulting in an increase in personnel expenses issued in the one hundred and eighty days prior to the end of the term of office of the head of the respective Branch or body referred to in art. 20.

Art. 21. It is null and void:

(Redaction given by Complementary Law No. 173, of 2020)

I - the act that causes an increase in personnel expenses and does not comply with:

a) the requirements of arts. 16 and 17 of this Complementary Law and the provisions of item XIII of the

caput of art. 37 and § 1 of art. 169 of the Federal Constitution; and

(Included by Complementary Law No. 173, of 2020)

b) the legal limit of commitment applied to expenses with inactive personnel;

(Included by Complementary Law No. 173, of 2020)

II - the act resulting in an increase in personnel expenses in the 180 (one hundred and eighty) days prior to the end of the term of office of the head of the Branch or body referred to in art. 20;

(Redaction given by Complementary Law No. 173, of 2020)

III - the act resulting in an increase in personnel expenses that provides for installments to be implemented in periods after the end of the term of office of the head of the Branch or body referred to in art. 20;

(Included by Complementary Law No. 173, of 2020)

IV - the approval, issuance or sanction, by the Head of the Executive Branch, by the President and other members of the Board or equivalent decision-making body of the Legislative Branch, by the President of a Court of the Judiciary and by the Head of the Public Prosecution Service, of the Union and the States, of a legal norm containing a plan for alteration, readjustment and restructuring of careers in the public sector, or the issuance of an act, by such agents, for the appointment of those approved in a public examination, when:

(Included by Complementary Law No. 173, of 2020)

a) results in an increase in personnel expenses in the 180 (one hundred and eighty) days prior to the end of the term of office of the Head of the Executive Branch; or

(Included by Complementary Law No. 173, of 2020)

b) results in an increase in personnel expenses that provides for installments to be implemented in periods after the end of the term of office of the Head of the Executive Branch.

(Included by Complementary Law No. 173, of 2020)

§ 1 The restrictions dealt with in items II, III and IV:

(Included by Complementary Law No. 173, of 2020)

I - must be applied even during the period of reappointment or reelection to the position of head of the Branch or autonomous body; and

(Included by Complementary Law No. 173, of 2020)

II - apply only to the holders occupying elective office of the Branches referred to in art. 20.

(Included by Complementary Law No. 173, of 2020)

§ 2 For the purposes of the provisions of this article, acts of appointment or filling of public office shall be considered those referred to in § 1 of art. 169 of the Federal Constitution or those that, in any way, entail the creation or increase of mandatory expense.

(Included by Complementary Law No. 173, of 2020)

Art. 22.

The verification of compliance with the limits established in arts. 19 and 20 shall be carried out at the end of each four-month period.

Sole paragraph. If the total personnel expenses exceed 95% (ninety-five percent) of the limit, the Branch or body referred to in art. 20 that has incurred the excess is prohibited from:

I - granting advantage, increase, readjustment or adjustment of remuneration on any grounds, except those derived from a judicial decision or from a legal or contractual determination, except for the revision provided in item X of art. 37 of the Constitution;

II - creating a position, employment or function;

III - altering the career structure that implies an increase in expenses;

IV - filling a public office, admitting or hiring personnel on any grounds, except for the replacement resulting from retirement or death of servants in the areas of education, health and security;

V - contracting overtime, except in the case of the provisions of item II of § 6 of art. 57 of the Constitution and the situations provided in the budget guidelines law.

Art. 23.

If the total personnel expenditure of the Power or body referred to in art. 20 exceeds the limits defined in the same article, without prejudice to the measures provided for in art. 22, the excess percentage must be eliminated in the following two four-month periods, with at least one third in the first, adopting, among others, the measures provided for in §§ 3 and 4 of art. 169 of the Constitution.

§ 1 In the case of item I of § 3 of art. 169 of the Constitution, the objective may be achieved either by extinguishing positions and functions or by reducing the amounts attributed to them.

(See ADI 2238)

§ 2 The temporary reduction of the workday with adjustment of salaries to the new working hours is permitted.

(See ADI 2238)

§ 3 If the reduction is not achieved within the established period, and while the excess persists, the entity may not:

§ 3 If the reduction is not achieved within the established period and while the excess persists, the Power or body referred to in art. 20 may not:

(Wording given by Complementary Law No. 178, of 2021)

I - receive voluntary transfers;

II - obtain guarantee, direct or indirect, from another entity;

III - contract credit operations, except those intended for the refinancing of marketable debt and those aimed at reducing personnel expenses.

III - contract credit operations, except those intended for the payment of marketable debt and those aimed at reducing personnel expenses.

(Wording given by Complementary Law No. 178, of 2021)

§ 4 The restrictions of § 3 apply immediately if the total personnel expenditure exceeds the limit in the first four-month period of the last year of the term of the holders of the Power or body referred to in art. 20.

§ 5 The restrictions provided for in § 3 of this article do not apply to the Municipality in the event of a real revenue drop greater than 10% (ten percent), compared to the corresponding four-month period of the previous financial year, due to: (Included by Complementary Law No. 164, of 2018)

Production of effects

I – decrease in transfers received from the Municipal Participation Fund resulting from the granting of tax exemptions by the Union; and (Included by Complementary Law No. 164, of 2018)

Production of effects

II – decrease in revenues received from royalties and special participations. (Included by Complementary Law No. 164, of 2018)

Production of effects

§ 6 The provisions of § 5 of this article apply only if the total personnel expenditure of the current four-month period does not exceed the percentage limit provided for in art. 19 of this Complementary Law, considering, for this calculation, the net current revenue of the corresponding four-month period of the previous year updated monetarily. (Included by Complementary Law No. 164, of 2018)

Production of effects

Section III

On Social Security Expenditures

Art. 24.

No benefit or service related to social security may be created, increased or extended without indicating the total funding source, in accordance with § 5 of art. 195 of the Constitution, also meeting the requirements of art. 17.

(See ADI 6357)

§ 1 The increase in expenditure arising from the following is exempt from the compensation referred to in art. 17:

I - granting of benefit to those who satisfy the eligibility conditions provided for in the relevant legislation;

II - quantitative expansion

of the assistance and services provided;

III - readjustment of the value of the benefit or service, in order to preserve its real value.

§ 2 The provisions of this article apply to health, social security and social assistance benefits or services, including those intended for public servants and military personnel, active and inactive, and pensioners.

CHAPTER V

ON VOLUNTARY TRANSFERS

Art. 25.

For the purposes of this Complementary Law,

voluntary transfer is understood as the delivery of current or capital resources to another entity of the Federation, as cooperation, aid or financial assistance, which does not result from a constitutional or legal determination, or those intended for the Unified Health System.

§ 1 In addition to those established in the budget guidelines law, the following are requirements for carrying out a voluntary transfer:

I - existence of specific appropriation;

II -

(VETOED)

III - observance of the provisions of item X of art. 167 of the Constitution;

IV - proof, by the beneficiary, of:

a) that it is up to date regarding the payment of taxes, loans and financing owed to the transferring entity, as well as regarding the rendering of accounts of resources previously received from it;

b) compliance with the constitutional limits relating to education and health;

c) observance of the limits of consolidated and marketable debts, of credit operations, including those by anticipation of revenue, of inscription in Restos a Pagar and of total personnel expenditure;

d) budgetary provision of counterpart.

§ 2 The use of transferred resources for a purpose different from the agreed one is prohibited.

§ 3 For the purposes of applying the sanctions of suspension of voluntary transfers contained in this Complementary Law, those relating to education, health and social assistance actions are excepted.

CHAPTER VI

ON THE ALLOCATION OF PUBLIC RESOURCES TO THE PRIVATE SECTOR

Art. 26.

The allocation of resources to, directly or indirectly, cover the needs of natural persons or deficits of legal persons must be authorized by a specific law, meet the conditions established in the budget guidelines law and be provided for in the budget or in its additional credits.

§ 1 The provisions of the caput apply to the entire indirect administration, including public foundations and state-owned companies, except, in the exercise of their primary attributions, financial institutions and the Central Bank of Brazil.

§ 2 It includes the granting of loans, financing and refinancing, including their respective extensions and debt composition, the granting of subsidies and participation in the constitution or increase of capital.

Art. 26-A. (VETOED).

(Included by Complementary Law No. 224, of 2025)

Production of effects

Art. 27.

In the granting of credit by an entity of the Federation to a natural person, or legal entity that is not under its direct or indirect control, the financial charges, commissions and similar expenses shall not be lower than those defined in law or the funding cost.

Sole paragraph. Extensions and compositions of debts arising from credit operations, as well as the granting of loans or financing in disagreement with the caput, depend on authorization in a specific law, with the corresponding subsidy consigned in the budget law.

Art. 28.

Except by specific law, public resources, including from credit operations, may not be used to rescue institutions of the National Financial System, even if through the granting of recovery loans or financing for change of share control.

§ 1 The prevention of insolvency and other risks shall be the responsibility of funds, and other mechanisms, constituted by the institutions of the National Financial System, in the form of the law.

§ 2 The provisions of the caput do not prohibit the Central Bank of Brazil from granting to financial institutions rediscount operations and loans with a term of less than three hundred and sixty days.

CHAPTER VII

OF DEBT AND INDEBTEDNESS

Section I

Basic Definitions

Art. 29.

For the purposes of this Complementary Law, the following definitions are adopted:

I - consolidated or funded public debt: total amount, calculated without duplication, of the financial obligations of the entity of the Federation, assumed by virtue of laws, contracts, agreements or treaties and the realization of credit operations, for amortization in a term exceeding twelve months;

II - marketable public debt: public debt represented by securities issued by the Union, including those of the Central Bank of Brazil, States and Municipalities;

III - credit operation: financial commitment assumed by reason of loan, opening of credit, issuance and acceptance of security, financed acquisition of goods, anticipated receipt of amounts from the sale on term of goods and services, leasing and other similar operations, including with the use of financial derivatives;

IV - granting of guarantee: commitment of fulfillment of financial or contractual obligation assumed by an entity of the Federation or entity linked to it;

V - refinancing of marketable debt: issuance of securities for payment of the principal plus monetary updating.

§ 1 The assumption, recognition or confession of debts by the entity of the Federation is equated to a credit operation, without prejudice to compliance with the requirements of arts. 15 and 16.

§ 2 The debt related to the issuance of securities of responsibility of the Central Bank of Brazil shall be included in the consolidated public debt of the Union.

§ 3 Also integrate the consolidated public debt the credit operations with a term of less than twelve months whose revenues have been included in the budget.

§ 4 The refinancing of the principal of the marketable debt shall not exceed, at the end of each financial year, the amount of the end of the previous year, added to that of the credit operations authorized in the budget for this purpose and effectively carried out, plus monetary updating.

Section II

Of the Limits of Public Debt and Credit Operations

Art. 30.

Within ninety days after the publication of this Complementary Law, the President of the Republic shall submit to:

I - Federal Senate: proposal of global limits for the amount of the consolidated debt of the Union, States and Municipalities, complying with the provisions of item VI of art. 52 of the Constitution, as well as limits and conditions related to items VII, VIII and IX of the same article;

II - National Congress: bill that establishes limits for the amount of the federal marketable debt referred to in item XIV of art. 48 of the Constitution, accompanied by the demonstration of its adequacy to the limits set for the consolidated debt of the Union, observing the provisions of item I of § 1 of this article.

§ 1 The proposals referred to in items I and II of the caput and their alterations shall contain:

I - demonstration that the limits and conditions are consistent with the norms established in this Complementary Law and with the objectives of fiscal policy;

II - estimates of the impact of the application of the limits to each of the three spheres of government;

III - reasons for eventual proposal of differentiated limits by sphere of government;

IV - methodology for calculating the primary and nominal results.

§ 2 The proposals mentioned in items I and II of the caput may also be presented in terms of net debt, evidencing the form and methodology of its calculation.

§ 3

The limits dealt with in items I and II of the caput shall be fixed as a percentage of the net current revenue for each sphere of government and applied equally to all entities of the Federation that integrate it, constituting, for each of them, maximum limits.

§ 4 For purposes of verification of compliance with the limit, the calculation of the amount of the consolidated debt shall be made at the end of each four-month period.

§ 5 Within the term provided in art. 5, the President of the Republic shall send to the Federal Senate or to the National Congress, as the case may be, a proposal for maintenance or alteration of the limits and conditions provided in items I and II of the caput.

§ 6 Whenever the foundations of the proposals dealt with in this article are altered, due to economic instability or alterations in monetary or exchange policies, the President of the Republic may forward to the Federal Senate or to the National Congress a request for revision of the limits.

§ 7 Judicial precatories not paid during the execution of the budget in which they have been included integrate the consolidated debt, for purposes of application of the limits.

Section III

Of the Return of Debt to the Limits

Art. 31.

If the consolidated debt of a Federative entity exceeds its respective limit at the end of a four-month period, it must be brought back to that limit by the end of the following three four-month periods, reducing the excess by at least 25% (twenty-five percent) in the first.

§ 1 While the excess persists, the entity that has incurred it:

I - shall be prohibited from carrying out internal or external credit operations, including those by anticipation of revenue, except for the refinancing of the updated principal of the marketable debt;

I - shall be prohibited from carrying out internal or external credit operations, including those by anticipation of revenue, except those for the payment of marketable debts;

(Wording given by Complementary Law No. 178, of 2021)

II - shall obtain the primary result necessary to bring the debt back to the limit, promoting, among other measures, limitation of commitment, in the form of art. 9.

§ 2 Once the deadline for returning the debt to the limit has expired, and while the excess persists, the entity shall also be prevented from receiving voluntary transfers from the Union or the State.

§ 3 The restrictions of § 1 apply immediately if the amount of the debt exceeds the limit in the first four-month period of the last year of the term of office of the Head of the Executive Branch.

§ 4 The Ministry of Finance shall disclose, monthly, the list of entities that have exceeded the limits of consolidated and marketable debts.

§ 5 The rules of this article shall be observed in cases of non-compliance with the limits of marketable debt and internal and external credit operations.

Section IV

On Credit Operations

Subsection I

On Contracting

Art. 32.

The Ministry of Finance shall verify compliance with the limits and conditions relating to the carrying out of credit operations by each Federative entity, including companies controlled by them, directly or indirectly.

§ 1 The interested entity shall formalize its request, basing it on an opinion from its technical and legal bodies, demonstrating the cost-benefit relationship, the economic and social interest of the operation, and compliance with the following conditions:

I - existence of prior and express authorization for the contracting, in the text of the budget law, in additional credits or specific law;

II - inclusion in the budget or in additional credits of the resources arising from the operation, except in the case of operations by anticipation of revenue;

III - observance of the limits and conditions set by the Federal Senate;

IV - specific authorization from the Federal Senate, when it concerns an external credit operation;

V - compliance with the provisions of item III of art. 167 of the Constitution;

VI - observance of the other restrictions established in this Complementary Law.

§ 2 Operations relating to authorized federal marketable debt, in the text of the budget law or additional credits, shall be subject to a simplified process that meets their specificities.

§ 3 For the purposes of the provisions of item V of § 1, in each fiscal year, the total of the resources from credit operations entering therein and the capital expenditures executed shall be considered, observing the following:

I - capital expenditures carried out in the form of a loan or financing to a taxpayer, with the aim of promoting a tax incentive, based on a tax under the competence of the Federative entity, shall not be computed if it results in a direct or indirect reduction of its burden;

II - if the loan or financing referred to in item I is granted by a financial institution controlled by the Federative entity, the value of the operation shall be deducted from the capital expenditures;

III -

(VETOED)

§ 4 Without prejudice to the own attributions of the Federal Senate and the Central Bank of Brazil, the Ministry of Finance shall carry out the centralized and updated electronic registration of internal and external public debts, guaranteeing public access to the information, which shall include:

I - charges and contracting conditions;

II - updated balances and limits relating to consolidated and marketable debts, credit operations and granting of guarantees.

§ 5 External credit operation contracts shall not contain a clause that entails automatic compensation of debits and credits.

§ 6 The validity period of the verification of the limits and conditions dealt with in this article and of the analysis carried out for the granting of a guarantee by the Union shall be at least 90 (ninety) days and at most 270 (two hundred and seventy) days, at the discretion of the Ministry of Finance. (Included by Complementary Law No. 159, of 2017)

§ 7 The purpose of a credit operation of States, the Federal District and Municipalities may be changed without the need for a new verification by the Ministry of Economy, provided that there is prior and express authorization for such, in the text of the budget law, in additional credits or in a specific law, that the cost-benefit relationship and the economic and social interest of the operation are demonstrated, and that it does not constitute an infraction of a provision of this Complementary Law.

(Included by Complementary Law No. 178, of 2021)

Art. 33.

The financial institution that contracts a credit operation with a Federative entity, except when relating to marketable or external debt, shall require proof that the operation meets the established conditions and limits.

§ 1 The operation carried out in violation of the provisions of this Complementary Law shall be considered null and void, and shall be cancelled, with the return of the principal, and the payment of interest and other financial charges is prohibited.

§ 2 If the return is not carried out in the fiscal year in which the resources entered, a specific reserve shall be recorded in the budget law for the following fiscal year.

§ 3 Until the cancellation, amortization, or constitution of the reserve is carried out, the sanctions provided for in the items of § 3 of art. 23 shall apply.

§ 3 Until the cancellation or amortization is carried out or the reserve referred to in § 2 is constituted, the restrictions provided for in § 3 of art. 23 shall apply to the entity.

(Wording given by Complementary Law No. 178, of 2021)

§ 4 Also, a reserve shall be constituted, in the amount equivalent to the excess, if the provisions of item III of art. 167 of the Constitution are not complied with, considering the provisions of § 3 of art. 32.

Subsection II

Of the Prohibitions

Art. 34.

The Central Bank of Brazil shall not issue public debt securities as of two years after the publication of this Complementary Law.

Art. 35.

The performance of a credit operation between one entity of the Federation, directly or through a fund, autarchy, foundation or dependent state-owned company, and another, including its entities of the indirect administration, is prohibited, even in the form of novation, refinancing or postponement of previously contracted debt.

§ 1 Excepted from the prohibition referred to in the caput are operations between a state financial institution and another entity of the Federation, including its entities of the indirect administration, that are not intended to:

I - finance, directly or indirectly, current expenses;

I - finance, directly or indirectly, current expenses, except for operations intended to finance the structuring of projects or to guarantee considerations in public-private partnership or concession contracts for the entity of the Federation affected by the public calamity recognized by the National Congress referred to in art. 65; (Redaction given by Complementary Law No. 206, of 2024)

I - finance, directly or indirectly, current expenses, except for operations intended to finance the structuring of projects or to guarantee considerations in public-private partnership or concession contracts; (Redaction given by Complementary Law No. 212, of 2025)

II - refinance debts not contracted with the granting institution itself.

§ 2 The provisions of the caput do not prevent States and Municipalities from purchasing Union debt securities as an application of their available funds.

Art. 36.

A credit operation between a state financial institution and the entity of the Federation that controls it, as the beneficiary of the loan, is prohibited.

Sole paragraph. The provisions of the caput do not prohibit a controlled financial institution from acquiring, on the market, public debt securities to meet its clients' investments, or securities of the debt issued by the Union for the application of its own resources.

Art. 37.

The following are equivalent to credit operations and are prohibited:

I - raising funds as an advance of revenue from a tax or contribution whose taxable event has not yet occurred, without prejudice to the provisions of § 7 of art. 150 of the Constitution;

II - receiving in advance amounts from a company in which the Public Power holds, directly or indirectly, the majority of the voting capital stock, except profits and dividends, in accordance with the legislation;

III - directly assuming a commitment, acknowledgment of debt or similar operation, with a supplier of goods, merchandise or services, through the issuance, acceptance or guarantee of a credit instrument, this prohibition not applying to dependent state-owned companies;

IV - assuming an obligation, without budgetary authorization, with suppliers for the posteriori payment of goods and services.

Subsection III

Of Credit Operations by Anticipation of Budgetary Revenue

Art. 38.

The credit operation by anticipation of revenue is intended to meet cash insufficiency during the fiscal year and shall comply with the requirements mentioned in art. 32 and the following:

I - it shall be carried out only from the tenth day of the beginning of the fiscal year;

II - it must be settled, with interest and other charges, by December tenth of each year;

III - it shall not be authorized if charges other than the interest rate of the operation are charged, which must be pre-fixed or indexed to the basic financial rate, or to the one that replaces it;

IV - it shall be prohibited:

a) while there exists a previous operation of the same nature not fully redeemed;

b) in the last year of the mandate of the President, Governor or Municipal Mayor.

§ 1 The operations dealt with in this article shall not be computed for the purposes of the provisions of item III of art. 167 of the Constitution, provided they are settled within the period defined in item II of the caput.

§ 2 Credit operations by anticipation of revenue carried out by States or Municipalities shall be effected through the opening of credit with the financial institution winning an electronic competitive process promoted by the Central Bank of Brazil.

§ 3 The Central Bank of Brazil shall maintain a system for monitoring and controlling the balance of the open credit and, in the case of non-compliance with the limits, shall apply the appropriate sanctions to the creditor institution.

Subsection IV

Of Operations with the Central Bank of Brazil

Art. 39.

In its relations with an entity of the Federation, the Central Bank of Brazil is subject to the prohibitions contained in art. 35 and the following:

I - purchase of debt securities, on the date of their placement on the market, except as provided in § 2 of this article;

II - exchange, even temporary, through a financial institution or not, of debt securities of an entity of the Federation for federal public debt securities, as well as the purchase and sale operation, forward, of that security, whose final effect is similar to the exchange;

III - granting of guarantee.

§ 1 The provisions of item II, in fine, do not apply to the stock of Central Bank of Brazil Bills, Special Series, existing in the portfolio of financial institutions, which may be refinanced through new forward sale operations.

§ 2 The Central Bank of Brazil may only directly purchase securities issued by the Union to refinance the federal marketable debt that is maturing in its portfolio.

§ 3 The operation mentioned in § 2 shall be carried out at the average rate and conditions reached on the day, in a public auction.

§ 4 The National Treasury is prohibited from acquiring federal public debt securities existing in the portfolio of the Central Bank of Brazil, even with a reversal clause, except to reduce the marketable debt.

Section V

Of the Guarantee and Counter-Guarantee

Art. 40.

The entities may grant guarantees in domestic or external credit operations, observing the provisions of this article, the rules of art. 32 and, in the case of the Union, also the limits and conditions established by the Federal Senate.

Art. 40. The entities may grant guarantees in domestic or external credit operations, observing the provisions of this article, the rules of art. 32 and, in the case of the Union, also the limits and conditions established by the Federal Senate and the rules issued by the Ministry of Economy regarding the classification of the payment capacity of borrowers.

(Text given by Complementary Law No. 178, of 2021)

§ 1 The guarantee shall be conditioned on the offering of counter-guarantee, in an amount equal to or greater than that of the guarantee to be granted, and on the compliance of the entity requesting it with its obligations to the guarantor and the entities controlled by the latter, observing the following:

I - no counter-guarantee shall be required from bodies and entities of the entity itself;

II - the counter-guarantee required by the Union from a State or Municipality, or by the States from the Municipalities, may consist of the earmarking of tax revenues directly collected and arising from constitutional transfers, with the granting of powers to the guarantor to withhold them and use the respective amount in the settlement of the matured debt.

§ 2 In the case of a credit operation with an international financial organization, or with a federal credit and development institution for the transfer of external resources, the Union shall only provide a guarantee to an entity that meets, in addition to the provisions of § 1, the legal requirements for receiving voluntary transfers.

§ 3

(VETOED)

§ 4

(VETOED)

§ 5 Any guarantee granted above the limits set by the Federal Senate is null and void.

§ 6 It is prohibited for entities of the indirect administration, including their controlled and subsidiary companies, to grant guarantees, even with funds from funds.

§ 7 The provisions of § 6 do not apply to the granting of a guarantee by:

I - a controlled company to a subsidiary or its controlled company, nor to the provision of counter-guarantee under the same conditions;

II - a financial institution to a national company, under the terms of the law.

§ 8 Excepted from the provisions of this article is the guarantee provided:

I - by state-owned financial institutions, which shall be subject to the rules applicable to private financial institutions, in accordance with the relevant legislation;

II - by the Union, in the form of a federal law, to companies of a financial nature controlled by it, directly and indirectly, with regard to export credit insurance operations.

§ 9 When they honor a debt of another entity, by reason of a guarantee provided, the Union and the States may condition constitutional transfers on the reimbursement of that payment.

§ 10. The entity of the Federation whose debt has been honored by the Union or by a State, as a result of a guarantee provided in a credit operation, shall have its access to new credits or financing suspended until the total settlement of the aforementioned debt.

§ 11. The alteration of the methodology used for the purpose of classifying the payment capacity of States and Municipalities shall be preceded by a public consultation, ensuring the manifestation of the entities.

(Included by Complementary Law No. 178, of 2021)

Section VI

Of the Restos a Pagar

Art. 41.

(VETOED)

Art. 41-A. As of 1 January 2027, if it is verified, at the end of a fiscal year, that the cash availability is not sufficient to honor the commitments with processed and unprocessed Restos a Pagar registered and with the other financial obligations, the prohibition on granting or expanding incentives or benefits of a tax nature shall immediately apply to the respective Branch or body referred to in art. 20, until the next annual assessment.

(Included by Complementary Law No. 212, of 2025)

Sole paragraph. If it is verified that the insufficiency referred to in the caput persists for 2 (two) consecutive years, the prohibitions provided for in items I, II and III of the sole paragraph of art. 22 shall immediately apply to the respective Branch or body, as long as the insufficiency persists, as well as the prohibition on granting or expanding incentives or benefits of a tax nature.

(Included by Complementary Law No. 212, of 2025)

Art. 42. It is prohibited for the head of a Branch or body referred to in art. 20, in the last two four-month periods of their term, to incur an expense obligation that cannot be fully fulfilled within it, or that has installments to be paid in the following fiscal year without sufficient cash availability for this purpose.

(See Complementary Law No. 178, of 2021)

(Effectiveness)

Sole paragraph. In determining cash availability, the charges and committed expenses payable until the end of the fiscal year shall be considered.

CHAPTER VIII

OF ASSET MANAGEMENT

Section I

Of Cash Availability

Art. 43.

The cash availability of the entities of the Federation shall be deposited as established in § 3 of art. 164 of the Constitution.

§ 1 The cash availability of the social security regimes, general and specific to public servants, even if linked to specific funds referred to in arts. 249 and 250 of the Constitution, shall be deposited in an account separate from the other availabilities of each entity and invested under market conditions, observing the limits and conditions of protection and financial prudence.

§ 2 It is prohibited to invest the availabilities referred to in § 1 in:

I - state and municipal public debt securities, as well as in shares and other securities related to companies controlled by the respective entity of the Federation;

II - loans, of any nature, to the insured and to the Public Power, including its controlled companies.

Section II

Of the Preservation of Public Assets

Art. 44.

It is prohibited to use capital revenue derived from the disposal of assets and rights that are part of the public assets to finance current expenses, except if destined by law to the social security regimes, general and specific to public servants.

Art. 45.

Observed the provisions of § 5 of art. 5, the budget law and supplementary credit laws shall only include new projects after the ongoing ones have been adequately attended to and the expenses for the conservation of public property have been contemplated, in accordance with the terms set forth in the budget guidelines law.

Sole paragraph. The Executive Branch of each entity shall forward to the Legislative Branch, by the date of submission of the budget guidelines bill, a report with the information necessary for compliance with the provisions of this article, which shall be given wide dissemination.

Art. 46.

Any expropriation act of urban real property issued without compliance with the provisions of § 3

of art. 182 of the Constitution, or prior judicial deposit of the amount of compensation, shall be null and void.

Section III

On Companies Controlled by the Public Sector

Art. 47.

A controlled company that signs a management contract establishing objectives and performance targets, in the form of the law, shall have managerial, budgetary and financial autonomy, without prejudice to the provisions of item II of § 5 of art. 165 of the Constitution.

Sole paragraph. The controlled company shall include in its quarterly balance sheets an explanatory note informing:

I - supply of goods and services to the controller, with respective prices and conditions, comparing them with those practiced in the market;

II - resources received from the controller, for any purpose, specifying amount, source and destination;

III - sale of goods, provision of services or granting of loans and financing with prices, rates, terms or conditions different from those in force in the market.

CHAPTER IX

ON TRANSPARENCY, CONTROL AND OVERSIGHT

Section I

On Transparency of Fiscal Management

Art. 48.

The instruments of transparency of fiscal management, to which wide dissemination shall be given, including in electronic means of public access, are: the plans, budgets and budget guidelines laws; the accounts and the respective prior opinion; the Summary Report of Budget Execution and the Fiscal Management Report; and the simplified versions of these documents.

Sole paragraph. Transparency shall also be ensured through incentives for popular participation and the holding of public hearings during the processes of preparation and discussion of the plans, budget guidelines law and budgets.

Sole paragraph. Transparency shall also be ensured through: (Text given by Complementary Law No. 131, of 2009).

§ 1

Transparency shall also be ensured through: (Text given by Complementary Law No. 156, of 2016)

I – incentive for popular participation and holding of public hearings, during the processes of preparation and discussion of the plans, budget guidelines law and budgets; (Included by Complementary Law No. 131, of 2009).

II – release to the full knowledge and monitoring of society, in real time, of detailed information on budget and financial execution, in electronic means of public access; (Included by Complementary Law No. 131, of 2009).

II - release to the full knowledge and monitoring of society, in real time, of detailed information on budget and financial execution, in electronic means of public access; and (Text given by Complementary Law No. 156, of 2016)

III – adoption of an integrated system of financial administration and control, which meets the minimum quality standard established by the Executive Branch of the Union and the provisions of art. 48-A. (Included by Complementary Law No. 131, of 2009)

(See Decree No. 7,185, of 2010)

IV - dissemination on the Transparency Portal, in open and standardized format, of updated data on benefits of a tax, financial and credit nature granted.

(Included by Complementary Law No. 224, of 2025)

Production of effects

§ 2 The Union, the States, the Federal District and the Municipalities shall make available their accounting, budgetary and fiscal information and data in accordance with the periodicity, format and system established by the central accounting body of the Union, which shall be disclosed in electronic means of broad public access. (Included by Complementary Law No. 156, of 2016)

§ 3 The States, the Federal District and the Municipalities shall forward to the Ministry of Finance, in the terms and periodicity to be defined in a specific instruction of this body, the information necessary for the constitution of the centralized and updated electronic registry of internal and external public debts, referred to in § 4 of art. 32. (Included by Complementary Law No. 156, of 2016)

§ 4 Non-compliance with the provisions of §§ 2 and 3 shall entail the penalties provided for in § 2 of art. 51. (Included by Complementary Law No. 156, of 2016)

§ 5 In cases of submission as provided in § 2, for all purposes, the Union, the States, the Federal District and the Municipalities comply with the duty of wide dissemination referred to in the caput. (Included by Complementary Law No. 156, of 2016)

§ 6 All Branches and bodies referred to in art. 20, including autarchies, public foundations, dependent state-owned enterprises and funds, of the entity of the Federation must use single systems of budget and financial execution, maintained and managed by the Executive Branch, preserving autonomy. (Included by Complementary Law No. 156, of 2016)

Art. 48-A. For the purposes referred to in item II of the sole paragraph of art. 48, the entities of the Federation shall make available to any natural or legal person access to information regarding: (Included by Complementary Law No. 131, of 2009).

I – regarding expenditure: all acts performed by the managing units during the execution of the expenditure, at the moment of its realization, with the minimum availability of data referring to the number of the corresponding process, the good supplied or the service provided, the natural or legal person beneficiary of the payment and, when applicable, the bidding procedure carried out; (Included by Complementary Law No. 131, of 2009).

II – as to revenue: the recording and receipt of all revenue of the managing units, including that referring to extraordinary resources.

(Included by Complementary Law No. 131, of 2009).

Art. 49.

The accounts presented by the Head of the Executive Branch shall remain available, throughout the fiscal year, at the respective Legislative Branch and at the technical body responsible for their preparation, for consultation and appreciation by citizens and institutions of society.

Sole paragraph. The rendering of accounts of the Union shall contain statements of the National Treasury and of the official financial development agencies, including the Brazilian National Bank for Economic and Social Development, specifying the loans and financing granted with resources originating from the fiscal and social security budgets and, in the case of financial agencies, a detailed assessment of the fiscal impact of their activities during the fiscal year.

Section II

On the Bookkeeping and Consolidation of Accounts

Art. 50.

In addition to complying with the other public accounting rules, the bookkeeping of public accounts shall observe the following:

I - cash availability shall be recorded in a specific register, so that resources tied to an agency, fund or mandatory expenditure are identified and recorded individually;

II - expenditure and the assumption of commitments shall be recorded on an accrual basis, with the result of financial flows being determined, on a complementary basis, on a cash basis;

III - the financial statements shall comprise, separately and jointly, the transactions and operations of each agency, fund or entity of the direct, autarchic and foundational administration, including dependent state-owned companies;

IV - social security revenues and expenditures shall be presented in specific financial and budgetary statements;

V - credit operations, registrations in Restos a Pagar and the other forms of financing or assumption of commitments with third parties shall be recorded so as to evidence the amount and variation of the public debt in the period, detailing at least the nature and type of creditor;

VI - the statement of changes in equity shall highlight the origin and destination of resources arising from the disposal of assets.

§ 1 In the case of joint statements, intragovernmental operations shall be excluded.

§ 2 The issuance of general rules for the consolidation of public accounts shall be the responsibility of the central accounting body of the Union, until the council referred to in art. 67 is implemented.

§ 3 The Public Administration shall maintain a cost system that allows the evaluation and monitoring of budgetary, financial and patrimonial management.

Art. 51.

The Executive Branch of the Union shall promote, by the thirtieth day of June, the consolidation, nationally and by sphere of government, of the accounts of the entities of the Federation relating to the previous fiscal year, and their disclosure, including by means of publicly accessible electronic media.

§ 1 The States and Municipalities shall submit their accounts to the Executive Branch of the Union within the following deadlines:

I - Municipalities, with a copy to the Executive Branch of the respective State, by thirtieth of April;

II - States, by thirty-first of May.

§ 1º The States and Municipalities shall submit their accounts to the Executive Branch of the Union by 30 April.

(Redaction given by Complementary Law No. 178, of 2021)

(Effectiveness)

§ 2 Failure to comply with the deadlines provided for in this article shall prevent, until the situation is regularized, the entity of the Federation from receiving voluntary transfers and contracting credit operations, except those intended for the refinancing of the updated principal of the marketable debt.

§ 2º Failure to comply with the deadlines provided for in this article shall prevent, until the situation is regularized, the Branch or body referred to in art. 20 from receiving voluntary transfers and contracting credit operations, except those intended for the payment of the marketable debt.

(Redaction given by Complementary Law No. 178, of 2021)

(Effectiveness)

Section III

On the Summary Report of Budgetary Execution

Art. 52.

The report referred to in § 3 of art. 165 of the Constitution shall cover all Branches and the Public Prosecution Service, shall be published up to thirty days after the end of each two-month period and shall consist of:

I - budgetary balance sheet, which shall specify, by economic category, the:

a) revenues by source, informing those realized and those to be realized, as well as the updated forecast;

b) expenditures by group of nature, detailing the appropriation for the fiscal year, the settled expenditure and the balance;

II - statements of execution of:

a) revenues, by economic category and source, specifying the initial forecast, the updated forecast for the fiscal year, the revenue realized in the two-month period, that realized in the fiscal year and the forecast to be realized;

b) expenditures, by economic category and group of nature of expenditure, detailing initial appropriation, appropriation for the fiscal year, committed and settled expenditures, in the two-month period and in the fiscal year;

c) expenditures, by function and subfunction.

§ 1 The amounts referring to the refinancing of the marketable debt shall appear separately in revenues from credit operations and in expenditures with debt amortization.

§ 2 Failure to comply with the deadline provided for in this article shall subject the entity to the sanctions provided for in § 2 of art. 51.

Art. 53.

The Summary Report shall be accompanied by statements relating to:

I - determination of net current revenue, as defined in item IV of art. 2, its evolution, as well as the forecast of its performance until the end of the fiscal year;

II - social security revenues and expenditures referred to in item IV of art. 50;

III - nominal and primary results;

IV - interest expenditures, as provided in item II of art. 4;

V - Restos a Pagar, detailing, by Branch and body referred to in art. 20, the amounts registered, the payments made and the amount to be paid.

§ 1 The report referring to the last two-month period of the fiscal year shall also be accompanied by statements:

I - of compliance with the provisions of item III of art. 167 of the Constitution, in accordance with § 3 of art. 32;

II - the actuarial projections of the general and own social security regimes of public servants;

III - of the asset variation, evidencing the disposal of assets and the application of the resources arising therefrom.

§ 2 Where applicable, justifications shall be presented:

I - for the limitation of commitment;

II - for the shortfall in revenues, specifying the measures to combat tax evasion and avoidance, adopted and to be adopted, and the inspection and collection actions.

Section IV

On the Fiscal Management Report

Art. 54.

At the end of each four-month period, the Fiscal Management Report shall be issued by the heads of the Powers and bodies referred to in art. 20, signed by:

I - Head of the Executive Power;

II - President and other members of the Board of Directors or equivalent decision-making body, in accordance with the internal regulations of the bodies of the Legislative Power;

III - President of the Court and other members of the Board of Administration or equivalent decision-making body, in accordance with the internal regulations of the bodies of the Judicial Power;

IV - Head of the Public Prosecution Service, of the Union and of the States.

Sole paragraph. The report shall also be signed by the authorities responsible for financial administration and internal control, as well as by

others defined by specific act of each Power or body referred to in art. 20.

Art. 55.

The report shall contain:

I - comparison with the limits dealt with in this Complementary Law, of the following amounts:

a) total personnel expenditure, distinguishing that with inactive employees and pensioners;

b) consolidated and marketable debts;

c) granting of guarantees;

d) credit operations, including those for anticipation of revenue;

e) expenses dealt with in item II of art. 4;

II - indication of the corrective measures adopted or to be adopted, if any of the limits is exceeded;

III - statements, in the last four-month period:

a) of the amount of cash availability on December thirty-first;

b) of the registration in Outstanding Payments, of the expenses:

1) settled;

2) committed and not settled, registered for meeting one of the conditions of item II of art. 41;

3) committed and not settled, registered up to the limit of the cash availability balance;

4) not registered due to lack of cash availability and whose commitments were cancelled;

c) of compliance with the provisions of item II and subitem b of item IV of art. 38.

§ 1 The report of the heads of the bodies mentioned in items II, III and IV of art. 54 shall contain only the information relating to subitem a of item I, and the documents referred to in items II and III.

§ 2 The report shall be published within thirty days after the end of the period to which it corresponds, with broad public access, including by electronic means.

§ 3 Failure to comply with the deadline referred to in § 2 subjects the entity to the sanction provided for in § 2 of art. 51.

§ 4 The reports referred to in arts. 52 and 54 shall be prepared in a standardized form, according to models that may be updated by the council dealt with in art. 67.

Section V

On the Rendering of Accounts

Art. 56.

The accounts rendered by the Heads of the Executive Power shall include, in addition to their own, those of the Presidents of the bodies of the Legislative and Judicial Powers and of the Head of the Public Prosecution Service, referred to in art. 20, which shall receive a prior opinion, separately, from the respective Court of Accounts. (See ADI 2324)

§ 1 The accounts of the Judicial Power shall be presented within:

I - the Union, by the Presidents of the Federal Supreme Court and of the Superior Courts, consolidating those of the respective courts;

II - the States, by the Presidents of the Courts of Justice, consolidating those of the other courts.

§ 2 The opinion on the accounts of the Courts of Accounts shall be rendered within the period provided for in art. 57 by the permanent joint committee referred to in § 1 of art. 166 of the Constitution or equivalent of the state and municipal Legislative Houses. (See ADI 2324)

§ 3 Broad dissemination shall be given to the results of the appreciation of the accounts, whether judged or taken.

Art. 57.

The Courts of Accounts shall issue a conclusive prior opinion on the accounts within sixty days of receipt, if no other is established in the state constitutions or municipal organic laws.

§ 1 In the case of Municipalities that are not capitals and that have fewer than two hundred thousand inhabitants, the period shall be one hundred and eighty days.

§ 2 The Courts of Accounts shall not go into recess while there are accounts of a Power, or body referred to in art. 20, pending a prior opinion.

Art. 58.

The rendering of accounts shall evidence the performance of revenue collection in relation to the forecast, highlighting the measures adopted within the scope of revenue inspection and combating tax evasion, the actions for credit recovery in administrative and judicial instances, as well as the other measures to increase tax and contribution revenues.

Section VI

On the Inspection of Fiscal Management

Art. 59.

The Legislative Power, directly or with the assistance of the Courts of Accounts, and the internal control system of each Power and of the Public Prosecution Service, shall inspect compliance with the norms of this Complementary Law, with emphasis on what refers to:

(See ADI 2324)

Art. 59. The Legislative Power, directly or with the assistance of the Courts of Accounts, and the internal control system of each Power and of the Public Prosecution Service shall inspect compliance with this Complementary Law, considering the methodological standardization norms issued by the council dealt with in art. 67, with emphasis on what refers to:

(Amended by Complementary Law No. 178, of 2021)

I - achievement of the targets established in the budget guidelines law;

II - limits and conditions for carrying out credit operations and enrollment in Restos a Pagar;

III - measures adopted for the return of total personnel expenditure to the respective limit, under the terms of arts. 22 and 23;

IV - measures taken, as provided in art. 31, to bring the amounts of the consolidated and marketable debts back to their respective limits;

V - allocation of resources obtained from the disposal of assets, in view of the constitutional restrictions and those of this Complementary Law;

VI - compliance with the total expenditure limit of municipal legislatures, where applicable.

§ 1 The Courts of Accounts shall alert the Powers or bodies referred to in art. 20 when they verify:

I - the possibility of occurrence of the situations provided for in item II of art. 4 and in art. 9;

II - that the amount of total personnel expenditure exceeded 90% (ninety percent) of the limit;

III - that the amounts of the consolidated and marketable debts, of credit operations and of the granting of guarantees are above 90% (ninety percent) of their respective limits;

IV - that expenditures with inactive employees and pensioners are above the limit defined by law;

V - facts that compromise the costs or results of programs or indications of irregularities in budget management.

§ 2 The Courts of Accounts shall also verify the calculations of the limits of total personnel expenditure of each Power and body referred to in art. 20.

§ 3 The Federal Court of Accounts shall monitor compliance with the provisions of §§ 2, 3 and 4 of art. 39.

CHAPTER X

FINAL AND TRANSITIONAL PROVISIONS

Art. 60.

A state or municipal law may set limits lower than those provided in this Complementary Law for consolidated and marketable debts, credit operations and granting of guarantees.

Art. 61.

Public debt securities, provided they are duly recorded in a centralized settlement and custody system, may be offered as collateral to guarantee loans, or in other transactions provided by law, at their economic value, as defined by the Ministry of Finance.

Art. 62.

Municipalities shall only contribute to the funding of expenses within the competence of other entities of the Federation if there is:

I - authorization in the budget guidelines law and in the annual budget law;

II - agreement, accord, adjustment or similar, in accordance with their legislation.

Art. 63.

Municipalities with a population of less than fifty thousand inhabitants may opt to:

I - apply the provisions of art. 22 and § 4 of art. 30 at the end of the semester;

II - disclose semi-annually:

a)

(VETOED)

b) the Fiscal Management Report;

c) the statements referred to in art. 53;

III - prepare the Fiscal Policy Annex of the multi-year plan, the Fiscal Targets Annex and the Fiscal Risks Annex of the budget guidelines law and the annex referred to in item I of art. 5 as from the fifth fiscal year following the publication of this Complementary Law.

§ 1 The disclosure of the reports and statements shall be carried out within thirty days after the end of the semester.

§ 2 If the limits relating to total personnel expenditure or consolidated debt are exceeded, while this situation persists, the Municipality shall be subject to the same verification and return-to-limit deadlines defined for the other entities.

Art. 64.

The Union shall provide technical assistance and financial cooperation to Municipalities for the modernization of their tax, financial, asset and social security administrations, with a view to complying with the rules of this Complementary Law.

§ 1 Technical assistance shall consist of the training and development of human resources and the transfer of technology, as well as support for the disclosure of the instruments referred to in art. 48 in electronic media of broad public access.

§ 2 Financial cooperation shall comprise the donation of goods and values, financing through federal financial institutions and the transfer of resources from external operations.

§ 3 The technical assistance and financial cooperation referred to in the caput may be provided for the modernization of the educational management of States and Municipalities.

(Included by Complementary Law No. 212, of 2025)

Art. 65.

In the event of a public calamity recognized by the National Congress, in the case of the Union, or by the Legislative Assemblies, in the case of States and Municipalities, while the situation persists:

I - the counting of deadlines and the provisions established in arts. 23, 31 and 70 shall be suspended;

II - the achievement of fiscal results and the limitation of commitment provided for in art. 9 shall be waived.

Sole paragraph. The provisions of the caput shall apply in the case of a state of defense or siege, decreed in the form of the Constitution.

§ 1 In the event of a public calamity recognized by the National Congress, under the terms of a legislative decree, in part or in the entirety of the national territory and while the situation persists, in addition to the provisions in items I and II of the

caput:

(Included by Complementary Law No. 173, of 2020)

I - the limits, conditions and other restrictions applicable to the Union, the States, the Federal District and the Municipalities, as well as their verification, shall be waived, for:

(Included by Complementary Law No. 173, of 2020)

a) contracting and amendment of credit operations;

(Included by Complementary Law No. 173, of 2020)

b) granting of guarantees;

(Included by Complementary Law No. 173, of 2020)

c) contracting between entities of the Federation; and

(Included by Complementary Law No. 173, of 2020)

d) receipt of voluntary transfers;

(Included by Complementary Law No. 173, of 2020)

II - the limits shall be waived and the prohibitions and sanctions provided for and arising from arts. 35, 37 and 42 shall be set aside, as well as compliance with the provisions of the sole paragraph of art. 8 of this Complementary Law shall be waived, provided that the funds collected are allocated to combating the public calamity;

(Included by Complementary Law No. 173, of 2020)

III - the conditions and prohibitions provided for in arts. 14, 16 and 17 of this Complementary Law shall be set aside, provided that the incentive or benefit and the creation or increase of the expense are allocated to combating the public calamity.

(Included by Complementary Law No. 173, of 2020)

§ 2 The provisions of § 1 of this article, observing the terms established in the legislative decree that recognizes the state of public calamity:

(Included by Complementary Law No. 173, of 2020)

I - shall apply exclusively:

(Included by Complementary Law No. 173, of 2020)

a) to the units of the Federation affected and located in the territory where the state of public calamity is recognized by the National Congress and while said state of calamity lasts;

(Included by Complementary Law No. 173, of 2020)

b) to the acts of budgetary and financial management necessary to meet expenses related to compliance with the legislative decree;

(Included by Complementary Law No. 173, of 2020)

II - does not set aside the provisions relating to transparency, control and oversight.

(Included by Complementary Law No. 173, of 2020)

§ 3 In the case of an amendment to credit operations guaranteed by the Union under the provisions of § 1 of this article, the guarantee shall be maintained, and it shall not be necessary to amend the guarantee and counter-guarantee contracts in force.

(Included by Complementary Law No. 173, of 2020)

Art. 65-A. Federal transfers to the other entities of the Federation, duly identified, to address the social and economic consequences in the cultural sector arising from public calamities or pandemics shall not be counted in the primary result target, for the purposes of the provisions of art. 9 of this Complementary Law, provided that they are authorized in addition to the amounts initially provided for by the National Congress in the annual budget law. (Included by Complementary Law No. 195, of 2022)

Art. 66.

The time limits established in arts. 23, 31 and 70 shall be doubled in the case of low or negative real growth of the national, regional or state Gross Domestic Product (GDP) for a period equal to or greater than four quarters.

§ 1 Low growth is understood as the accumulated real variation rate of the Gross Domestic Product below 1% (one percent), in the period corresponding to the last four quarters.

§ 2 The variation rate shall be that calculated by the Brazilian Institute of Geography and Statistics Foundation or another body that may replace it, adopting the same methodology for calculating national, state and regional GDP.

§ 3 In the event of the caput, the measures provided for in art. 22 shall continue to be adopted.

§ 4 In the event of drastic changes in the conduct of monetary and exchange rate policies, recognized by the Federal Senate, the time limit referred to in the caput of art. 31 may be extended by up to four four-month periods.

Art. 67.

The permanent monitoring and evaluation of the policy and operationality of fiscal management shall be carried out by a fiscal management council, composed of representatives of all Powers and spheres of Government, the Public Prosecution Service and technical entities representing society, aiming to:

I - harmonization and coordination among the entities of the Federation;

II - dissemination of practices that result in greater efficiency in the allocation and execution of public spending, in revenue collection, in debt control and in the transparency of fiscal management;

III - adoption of rules for the consolidation of public accounts, standardization of accountability reports and the fiscal management reports and statements referred to in this Complementary Law, simpler rules and standards for small Municipalities, as well as others necessary for social control;

IV - dissemination of analyses, studies and diagnoses.

§ 1 The council referred to in the caput shall institute forms of awarding and public recognition to the holders of Powers who achieve meritorious results in their social development policies, combined with the practice of fiscal management guided by the rules of this Complementary Law.

§ 2 A law shall provide for the composition and form of operation of the council.

Art. 68.

In the form of art. 250 of the Constitution, the Fund of the General Social Security Regime is created, linked to the Ministry of Social Security and Assistance, with the purpose of providing resources for the payment of benefits of the general social security regime.

§ 1 The Fund shall be constituted of:

I - movable and immovable property, securities and income of the National Institute of Social Security not used in its operationalization;

II - property and rights that, for any reason, are adjudicated to it or that come to be linked to it by force of law;

III - revenue from social contributions for social security, provided for in subparagraph a of item I and item II of art. 195 of the Constitution;

IV - proceeds from the liquidation of property and assets of a natural or legal person in debt to Social Security;

V - result of the financial investment of its assets;

VI - resources from the Union budget.

§ 2 The Fund shall be managed by the National Institute of Social Security, in the form of the law.

Art. 69.

The entity of the Federation that maintains or comes to institute its own social security regime for its servants shall give it a contributory character and shall organize it based on accounting and actuarial rules that preserve its financial and actuarial balance.

Art. 70.

The Power or body referred to in art. 20

whose total personnel expenditure in the fiscal year prior to the publication of this Complementary Law is above the limits established in arts. 19 and 20 must conform to the respective limit within up to two fiscal years, eliminating the excess gradually, at a rate of at least 50% per year (fifty percent per year), by adopting, among others, the measures provided for in arts. 22 and 23.

Sole paragraph. Failure to comply with the provisions of the caput, within the established deadline, subjects the entity to the sanctions provided for in § 3 of art. 23.

Art. 71.

Except for the case of item X of art. 37 of the Constitution, until the end of the third fiscal year following the entry into force of this Complementary Law, the total personnel expenditure of the Powers and bodies referred to in art. 20 shall not exceed, as a percentage of net current revenue, the expenditure verified in the immediately preceding fiscal year, increased by up to 10% (ten percent), if this is lower than the limit defined in the form of art. 20.

Art. 72.

Expenditure on third-party services by the Powers and bodies referred to in art. 20 may not exceed, as a percentage of net current revenue, that of the fiscal year prior to the entry into force of this Complementary Law, until the end of the third following fiscal year.

Art. 73.

Infractions of the provisions of this Complementary Law shall be punished in accordance with Decree-Law no. 2.848 of 7 December 1940 (Penal Code); Law no. 1.079 of 10 April 1950; Decree-Law no. 201 of 27 February 1967;

Law no. 8.429 of 2 June 1992; and other norms of the pertinent legislation.

Art. 73-A.

Any citizen, political party, association or union is a legitimate party to report to the respective Court of Accounts and to the competent body of the Public Prosecution Service the non-compliance with the prescriptions established in this Complementary Law.

(Included by Complementary Law no. 131 of 2009).

Art. 73-B. The following deadlines are established for compliance with the determinations set forth in items II and III of the sole paragraph of art. 48 and of art. 48-A: (Included by Complementary Law no. 131 of 2009).

I – 1 (one) year for the Union, the States, the Federal District and the Municipalities with more than 100,000 (one hundred thousand) inhabitants; (Included by Complementary Law no. 131 of 2009).

II – 2 (two) years for the Municipalities that have between 50,000 (fifty thousand) and 100,000 (one hundred thousand) inhabitants; (Included by Complementary Law no. 131 of 2009).

III – 4 (four) years for the Municipalities that have up to 50,000 (fifty thousand) inhabitants. (Included by Complementary Law no. 131 of 2009).

Sole paragraph. The deadlines established in this article shall be counted from the date of publication of the complementary law that introduced the provisions referred to in the

caput

of this article. (Included by Complementary Law no. 131 of 2009).

Art. 73-C. Failure to comply, until the end of the deadlines provided for in art. 73-B, with the determinations contained in items II and III of the sole paragraph of art. 48 and in art. 48-A subjects the entity to the sanction provided for in item I of § 3 of art. 23. (Included by Complementary Law no. 131 of 2009).

Art. 74.

This Complementary Law enters into force on the date of its publication.

Art. 75.

Complementary Law no. 96 of 31 May 1999 is revoked.

Brasília, 4 May 2000; 179th of Independence and 112th of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Martus Tavares

This text does not replace the one published in the DOU of 5.5.2000

*