TCU approves Lula government accounts with reservations about Correios and debt
The TCU (Federal Audit Court) approved, with reservations, the accounts of the President of the Republic for the 2025 financial year. The trial took place this Wednesday morning (10), and the opinion of the rapporteur, Minister Benjamin Zymler, was approved unanimously.
However, despite the other ministers agreeing with the rapporteur's reservations, they presented other notes in their votes, in addition to also recommending approval.
The analysis carried out by the TCU verifies whether the data presented by the Union represents the financial, budgetary, accounting and patrimonial positions, and whether the management of public resources observed the constitutional and legal principles and norms that govern federal public administration.
In the vote that recommended approval, the rapporteur pointed out points of concern in the management not only of public accounts, but in the government's fiscal management.
"The final message of this analysis, of this preliminary opinion, is that Congress, the government and society must pay attention to some fundamental aspects that make the analysis carried out still problematic. The trajectory of the public debt is a concern, the rigidity of public spending in Brazil and the governance of revenue waivers as stated in our work", said Zymler.
According to the TCU, audit findings that constitute irregularities result in reservations. Other findings, which cannot be classified in this way, motivate alerts, to indicate to the Executive Branch situations that require attention and action.
Among the alerts, the TCU points out inconsistencies in the Constitutional Fund of the Federal District. The rapporteur warned about the use of appropriations intended for active employees to pay inactive employees and pensioners, in addition to flaws in the RREO (Budget Execution Summary Report) methodology, which omitted around R$5.3 billion in social security expenses.
The reservations to public accounts record non-conformities or materially relevant distortions identified in the audit. To analyze nonconformities, the new accounting analysis methodology divided the report into four thematic chapters:
- Budgetary and financial execution
- Compliance of fiscal management
- Result of government action
- Financial statements (General Balance Sheet of the Union)
Budget Execution Compliance
The Court pointed out irregularities and lack of transparency in PPSA (Petróleo Pré-Sal S.A) due to the execution of revenues and expenses outside the Budget Law (LOA) and without transit through the Single Treasury Account, and lack of monitoring of these resources executed outside the budget.
Another reservation to the 2025 accounts was about the Union's guarantee for Correios' credit operation. The TCU alleges that the concession was made with insufficient analysis of the payment capacity and the economic viability of the state-owned company's restructuring plan. Still regarding state-owned companies, reservations were made regarding contributions to non-dependent public companies, without adequate monitoring.
Regularity of Fiscal Management
Regarding fiscal management, the TCU warned about the granting of tax benefits without full demonstration of legal and constitutional requirements, in addition to overestimated revenues in the LOA 2025 (Annual Budget Law), with an inflated projection of R$60 billion in "Other revenues administered by the RFB".
The stabilization of public debt was also the subject of reservations from the reporting minister, who pointed out an insufficient fiscal effort for the stability of the DBGG (Gross General Government Debt).
He explained that the primary result fell short of what was necessary to contain the debt trajectory and warned of the absence, in PLDO 2026 (Budget Guidelines Bill), of primary results compatible with the stabilization of public debt (DBGG/GDP) within a ten-year horizon.
Government Management
The report warned of strategic weaknesses, such as deficiencies in program management, monitoring of goals and coordination with government strategic planning.
Reliability of Financial Statements (BGU)
The Court of Auditors also analyzed the BGU (General Balance Sheet of the Union), published by the National Treasury. The BGU aims to present to society the budgetary, financial and patrimonial situation and results of the Union.
It is made up of the Balance Sheet, the Statement of Equity Variations, the Budgetary Balance Sheet, the Financial Statement, the Cash Flow Statement and the Statement of Changes in Net Equity.
Value distortions were identified in financial assets, with a net undervaluation of R$38.9 billion. Regarding liabilities, in the Court's view there was an overvaluation of R$49.4 billion.
Annually, the TCU analyzes the president's accounts to verify compliance with the main fiscal and budgetary standards, such as fiscal targets, debt limits, constitutional floors in health and education, among other points. The opinion was sent to the National Congress to judge the accountability of the President of the Republic.
Source: CNN