Lei 139-2005: teto de TRANs a 18% ou $1,500 million

On November 9, 2005, Act No. 139 was approved, amending subsection (g) of Section 2 of Act No. 1 of June 26, 1987 to update the principal limit on Tax and Revenue Anticipation Notes (TRANs) the Treasury Secretary may issue to fund budget appropriations within the fiscal year.

The statement of motives describes a structural cash-flow mismatch: more than 50% of tax revenues are collected in the last four months of the fiscal year, while disbursements run all year. The fixed $800 million cap set in 1987 fell from about 25% of General Fund net revenues to only ~10% in FY2004-05, after net revenues grew from about $3,283 million (FY1987) to about $7,985 million (FY2004) — an ~143% increase.

The amendment provides that the total principal of notes issued and outstanding at any time, for any fiscal year, shall not exceed 18% of General Fund net revenues of the prior fiscal year or $1,500 million, whichever is less. The law takes effect immediately upon approval.

Cap authorization ≠ TRANs already issued or proof of a “stolen” deficit. Cousin: Act 43-2005 (improvement bonds). Primary: Act 139-2005 (LexJuris).

Fonte: LexJuris / Asamblea Legislativa. https://www.lexjuris.com/LEXLEX/Leyes2005/lexl2005139.htm