Will the value for the draftsman amendment be higher in 2024’s budget than in 2023?
Market Rules
Draftsman amendments, also known as RP 9, amounted to R$12.3 billion for nominations in the Brazilian 2022 Annual Budgetary Law (LOA in the Portuguese abbreviation), which refers to the year 2023. Nicknamed as “secret budget”, such amendments were created in 2020 and are criticized due to their lack of transparency, since lawmakers are not required to disclose the destination of these budgetary nominations.
If the value reserved for draftsman amendments for 2024’s Law of Budgetary Guidelines (LDO in the Portuguese abbreviation) surpasses R$12.3 billion, this market will resolve to “Yes”.