Brazil's Federal Audit Court (TCU) opposes Bolsonaro's proposal to increase energy costs to benefit agribusiness.

247 - Brazil's Federal Audit Court (TCU) has opposed the Jair Bolsonaro government's plan to reinstate subsidies on electricity bills to benefit agribusiness, which were eliminated last year by the Michel Temer administration. According to the TCU, the reintroduction of these subsidies is "completely misaligned" with sector legislation and the Constitution.

Subsidies embedded in electricity bills amount to R$ 20 billion, with 17% of this amount going to rural producers. According to last year's decree, the benefit granted to the sector would begin to be reduced this year until it reaches zero within five years.

However, agribusiness began exerting pressure a month after the decree was published. Last week, the government leader in the Chamber of Deputies, Representative Vitor Hugo (PSL-GO), stated that the Bolsonaro government would revoke the decree.

In the opinion that deems the resumption of the subsidy illegal, Minister Aroldo Cedraz, the case's rapporteur, accepted a report from the agency's technicians that pointed out flaws and defects in the management fee of the Energy Development Account (CDE), charged to consumers.

The understanding is that the benefit aimed at agribusiness should be funded with resources from the Federal Budget, since it is not linked to national energy policy.