# Law No. 7898 of November 30, 1989

> Brazilian law

**Wikidata**: [Q105650177](https://www.wikidata.org/wiki/Q105650177)  
**Source**: https://4ort.xyz/entity/law-no-7898-of-november-30-1989

## Summary
Law No. 7898 of November 30, 1989 is a Brazilian federal statute published in Brasília that authorizes the Executive Branch to open a supplementary credit to the Fiscal Budget of the Union. Promulgated by President José Sarney during the final year of his administration, the law sets a specific budgetary limit of NCZ 4,353,367.00 for this credit allocation.

## Key Facts
- **Official Title:** Lei nº 7898, de 30 de novembro de 1989
- **Type of Legal Instrument:** Statute (formal written document creating law)
- **Date of Publication:** November 30, 1989
- **Jurisdiction:** Brazil (Federative Republic of Brazil)
- **Place of Publication:** Brasília, DF (federal capital)
- **Approving Authority:** Presidency of the Federative Republic of Brazil, promulgated by President José Sarney
- **Primary Function:** Authorizes the Executive Branch to open supplementary credit
- **Budgetary Limit:** NCZ 4,353,367.00 (Cruzado Novo currency)
- **Target Budget:** Fiscal Budget of the Union (Orçamento Fiscal da União)
- **Legal Citation:** Lei nº 7898/1989
- **Lexml Brazil Identifier:** urn:lex:br:federal:lei:1989-11-30;7898
- **Official URL:** https://www.planalto.gov.br/ccivil_03/leis/1989_1994/l7898.htm
- **Language:** Brazilian Portuguese
- **Wikidata Project Membership:** WikiProject Brazilian Laws

## FAQs
**What is the purpose of Law No. 7898/1989?**
The law authorizes the Brazilian Executive Branch to open a supplementary credit to the Fiscal Budget of the Union, with a specific limit of NCZ 4,353,367.00. This mechanism allows for additional budgetary allocations beyond the original annual budget.

**Who approved and promulgated this law?**
The law was approved and promulgated by the Presidency of the Federative Republic of Brazil, with President José Sarney serving as the head of state at the time of promulgation on November 30, 1989.

**What does "supplementary credit" mean in this context?**
A supplementary credit (crédito suplementar) is a budgetary mechanism that authorizes additional spending to reinforce existing budget appropriations (dotação orçamentária). It is a standard tool in Brazilian public finance for adjusting budget allocations during the fiscal year.

**What currency does the NCZ 4,353,367.00 refer to?**
NCZ refers to the Cruzado Novo (New Cruzado), which was the official currency of Brazil in 1989. This currency was introduced earlier that year as part of Brazil's economic stabilization plans.

## Why It Matters
Law No. 7898/1989 represents a specific instance of Brazilian fiscal legislation from the late 1980s, a period marked by significant economic challenges and currency reforms. As a statute authorizing supplementary credit, it exemplifies the constitutional mechanism through which the Brazilian Executive Branch adjusts federal budget allocations. Such laws are essential tools for fiscal management, allowing the government to respond to unforeseen expenditures or reallocate resources during the budgetary year. The law specifically targets the Fiscal Budget of the Union, which encompasses the core financial planning of the federal government, and sets a precise monetary limit (NCZ 4,353,367.00), demonstrating the granular nature of Brazilian budgetary legislation. This statute also reflects the administrative practices of the José Sarney presidency (1985-1990), the first civilian government following two decades of military rule, operating under the transitional constitutional framework preceding the 1988 Constitution. The law remains accessible through official Brazilian government portals and is cataloged in the Lexml system, ensuring its availability for legal research and historical analysis.

## Notable For
- **Specific Budgetary Authorization:** Provides a precise monetary authorization (NCZ 4,353,367.00) rather than open-ended authority
- **Late Sarney Era Legislation:** Represents fiscal policy during the final months of the José Sarney administration
- **Cruzado Novo Currency:** Uses the NCZ (Cruzado Novo) currency denomination, specific to Brazil's 1989 monetary system
- **Constitutional Budgetary Mechanism:** Exemplifies the Brazilian constitutional procedure for supplementary credit authorization
- **Lexml Integration:** Fully cataloged in Brazil's official legal document system with unique URN identifier
- **Fiscal Budget Targeting:** Specifically addresses the Fiscal Budget of the Union, distinguishing it from other budget types
- **Executive-Legislative Coordination:** Demonstrates the statutory process required for Executive Branch budgetary adjustments

## Body

### Legal Classification and Nature
Law No. 7898/1989 is classified as a **statute** (estatuto), which constitutes a formal written document that creates law within the Brazilian legal system. As a statute, it serves as a manifestation of statutory law and contains legal norms. The document falls under the broader category of legislation and represents a specific type of legal act issued by the federal government of Brazil.

The law operates within the jurisdiction of the **Federative Republic of Brazil** and applies to the entire national territory. As a federal statute, it was enacted by the National Congress and promulgated by the Executive Branch, following the standard legislative process for Brazilian federal laws.

### Subject Matter and Scope
The primary subjects addressed by Law No. 7898/1989 include:
- **Supplementary Credit (Crédito Suplementar):** The core mechanism authorized by the law, allowing for additional budget allocations
- **Federal Government of Brazil (União Federal):** The entity whose budget is being modified
- **Authorization (Autorização):** The legal act of granting permission for budgetary operations
- **Executive Branch (Executivo):** The governmental branch authorized to execute the credit opening
- **Budgetary Reinforcement (Reforço):** The purpose of strengthening existing budget allocations
- **Credit Opening (Abertura de Crédito):** The formal process of creating new budget authority
- **Budget Appropriation (Dotação Orçamentária):** The specific allocations within the budget being supplemented

### Promulgation and Authority
The law was promulgated on **November 30, 1989**, by the **Presidency of the Federative Republic of Brazil**, with **José Sarney** serving as President. The promulgation occurred in **Brasília**, the federal capital of Brazil, which has served as the seat of the federal government since 1960. The determination method for this law was promulgation, indicating the formal act of making the law official and enforceable.

José Sarney's presidency (1985-1990) spanned a critical transition period in Brazilian history, marking the return to civilian rule after the military dictatorship (1964-1985). This law was enacted during the final year of his administration, a period characterized by significant economic challenges including high inflation and multiple currency reforms.

### Budgetary and Fiscal Context
The law authorizes a specific amount of **NCZ 4,353,367.00** (four million, three hundred fifty-three thousand, three hundred sixty-seven Cruzado Novo) for supplementary credit purposes. The **Cruzado Novo** (NCZ) was introduced in January 1989 as part of Brazil's economic stabilization attempts, replacing the previous Cruzado currency. This places the law within a specific monetary context of Brazil's economic history.

The target of the supplementary credit is the **Fiscal Budget of the Union** (Orçamento Fiscal da União), which represents the primary budgetary instrument for federal government operations. This distinguishes it from other types of federal budgets, such as social security or investment budgets.

### Official Identification and Access
The law carries several official identifiers:
- **Lexml Brazil URN:** `urn:lex:br:federal:lei:1989-11-30;7898` — This unique resource name provides a standardized identifier within Brazil's legal document system
- **Legal Citation:** Lei nº 7898/1989 — The standard abbreviated form for legal references
- **Official URL:** Available at `https://www.planalto.gov.br/ccivil_03/leis/1989_1994/l7898.htm` through the official Presidency portal

The law is part of the **WikiProject Brazilian Laws**, indicating its inclusion in structured knowledge initiatives focused on Brazilian legal documentation.

### Language and Publication
The law was published in **Brazilian Portuguese**, the official language of Brazil. The publication occurred in Brasília on November 30, 1989, following standard procedures for federal legislation. The official text is maintained by the Civil House of the Presidency of the Republic through the Planalto government portal.

### Historical and Constitutional Context
Law No. 7898/1989 was enacted just over one year after the promulgation of the **Constitution of Brazil** on October 5, 1988. This places it within the early period of Brazil's current constitutional framework. The 1988 Constitution established specific procedures for budgetary modifications, including requirements for supplementary credits through legislative authorization.

The late 1980s in Brazil were marked by significant economic instability, with inflation rates reaching hyperinflationary levels. Multiple economic plans were attempted during this period, each involving currency reforms and various price control mechanisms. The existence of this supplementary credit law reflects the budgetary pressures and fiscal adjustments occurring during this turbulent economic period.

### Related Legal Concepts
As a statute, Law No. 7898/1989 is part of the broader category of **statutory law**, which represents laws created through formal legislative processes. Statutes in Brazil are distinguished from other legal instruments such as provisional measures (medidas provisórias), decrees, and normative acts. The law functions as a specific legal norm within the Brazilian legal hierarchy, subordinate to the Constitution but superior to regulatory acts.

The concept of **supplementary credit** itself is a standard budgetary tool in Brazilian public finance, governed by constitutional provisions and complemented by ordinary legislation such as this law. Such credits are typically used when additional resources are needed for existing programs or when budget adjustments are required during the fiscal year.

## References

1. [Source](https://www.lexml.gov.br/urn/urn:lex:br:federal:lei:1989-11-30;7898)
2. [Source](https://legislacao.presidencia.gov.br/atos?tipo=LEI&numero=7898&ano=1989&data=30/11/1989&ato=18doXRE5EeFpWT82a)
3. LexML Brasil