See highlights like the fiscal framework, fuel tax resumption, minimum wage increase, program relaunch, and more
This Monday, the 10th, Luiz Inácio Lula da Silva (PT) completes 100 days of government. In that period the management invested in some economic and fiscal measures, also betting on the relaunch of the programs that marked the previous governments.
Among the highlights are the new fiscal framework, the resumption of fuel taxes, the increase in the minimum wage, the increase in the income tax exemption, among others. Watch:
New tax framework
On March 30, the rules of the proposed new tax rule – called the fiscal framework – were announced by the Minister of Finance, Fernando Haddad, after being presented to the Senate.
The package of measures, if approved by the national Congress, will replace the spending ceiling, a mechanism that since 2017 has linked spending growth to inflation.
Bolsa Família, minimum wage and personal income tax exemption
Another measure of the government in these 100 days was the interim measure (MP) that recreated Bolsa Família, an income transfer program that marked its previous governments and which was replaced by Auxílio Brasil in the previous administration, by Jair Bolsonaro (PL).
The new Bolsa Família continues with a subsidy of R$ 600, an amount already paid by Auxílio Brasil, with an additional R$ 150 for each six-year-old child in the family and an additional R$ 50 for children over the age of seven to young under 18 years old. With the new formulation of the programme, an additional 700,000 families will be covered after a thorough investigation conducted by the government, which identified 1.5 million beneficiaries outside the rules of the platform.
In addition, an increase in the minimum wage from the current R$1,302 to R$1,320 starting in May was also announced. According to President Lula, the minimum wage will now have a new annual adjustment formula that will take into account economic growth, as well as inflation.
The CEO also declared, on the same occasion, that the income tax exemption will be extended to all those who receive up to R$ 2,640 per month.
fuel tax
In late February, Finance Minister Fernando Haddad announced the resumption of the collection of federal PIS and Cofins fuel taxes. In a press conference, Haddad said that the petrol tax will be R$0.47 and the ethanol tax R$0.02.
The minister also announced the agreement with the states to be compensated for the losses caused by the limitation of the ICMS on fuels for a total of R$ 26.9 billion.
Amazon fund
The Amazon Fund, suspended during the Bolsonaro government, has been resumed in the current government. During Lula’s trip to the United States, US President Joe Biden announced the country’s accession to the fund.
Interest on payroll, airline tickets and adjustments
In March, the National Social Security Council decided to lower the ceiling of interest on payroll loans to beneficiaries of the National Social Security Institute (INSS). The Minister of Social Security and Prime Minister, Carlos Lupi, announced the reduction of the ceiling from the current 2.14% per month to 1.70% for pensioners and retirees.
The Minister of Ports and Airports, Márcio França (PSB), has announced Voa Brasil, a program structured so that a specific public, with an income of up to R$ 6,800, can buy plane tickets for R$ 200. The idea , according to him, is that airlines have a segment within their loyalty programs dedicated to the program. With it, civil servants, retirees and retirees, as well as students with Fies, will be able to purchase two tickets a year at the price of R$ 200 each, in 12 installments through the financing of Caixa, which then takes care of making the payment to the areas .
In these 100 days of government there has also been the announcement of a readjustment of Capes grants, ranging from 25% to 200% for undergraduate, graduate, scientific initiation and permanence scholarships. Without adjustment from 2013, master’s and doctoral scholarships will increase by 40% and postdoctoral scholarships by 25%:
Another adjustment announced concerns the agreement that guarantees a linear adjustment of 9% of the salaries of federal employees starting in May, as well as an increase of R$ 200 (43.6%) of the alimony, which goes from R$ 458 to BRL 658. According to the Ministry of Management and Innovation in Public Services, the deal falls within the reserve of 11.2 billion reais in the 2023 budget for this purpose. For the readjustment to take effect, a PLN will need to be passed in the National Congress.
My home, my life and other doctors
In addition to Bolsa Família, another program that has marked previous Lula governments is Minha Casa, Minha Vida, relaunched in these 100 days of government. In the announcement, Lula says the new program includes families living in urban areas earning up to R$8,000 in gross income per month. The design of the program will also include the social leasing of properties in urban areas.
In rural areas, the Rural 1 range includes those with an annual gross household income of up to R$31,680. Rural Range 2 will serve families with a gross annual income between R$ 31,680.01 and R$ 52,800. Rural range 3 will serve households with an annual gross income between R$ 52,800.01 and R$ 96,000.
The Mais Médicos program, created in 2013 to bring doctors to remote regions and which was almost extinct in the Bolsonaro administration, has been revamped with plans to hire 15,000 more professionals by the end of the year.
Called More Doctors for Brazil, the new program will prioritize Brazilians and aims to increase the number of health workers in the SUS, especially in the most vulnerable areas. There will also be investment in the construction and renovation of basic units serving the population
Clashes with the Central Bank
The 100 days of Lula’s government were also marked by conflicts and clashes with government authorities, such as the president himself and Minister Haddad, and the Central Bank and its president, Roberto Campos Neto – appointed by Bolsonaro to the post – regarding the basic interest rate, the Selic.
In interviews, Lula has raised the tone of his criticisms of the central bank and Roberto Campos Neto, saying that “there is no explanation” for the level of the Selic – currently at 13.75% per annum.
Among the critics of the Lula government, Roberto Campos Neto said that autarchy is a “technical body” and that, therefore, “it shouldn’t engage in political terms”.
And in the week that Copom met to discuss the most recent base rate maintenance, Lula returned to the subject, saying he will “keep beating” the Selic.
“I’m going to keep hitting, trying to fight so I can cut the interest rate so the economy can get back to investing,” Lula said.
Goals still to be achieved
There are still plans by the Lula government that have not yet materialised, such as the infrastructure investment program informally called the “new CAP”, which should be announced at the end of April.
The Civil House Minister, Rui Costa, reiterated that the new work program will consist of federal investments, concessions and an incentive for new public-private partnership (PPP) projects.
The Chief of Staff has a list of over 400 companies listed as priorities by the States: the folder will still select what will enter the plan.
In a ceremony to mark International Women’s Day on March 8, Lula also announced a package of measures to ensure equal pay for men and women in the labor market. The project will still be analyzed in Congress.
Another idea of the government this year is the readjustment of up to 39% of transfers of funds for the School Feeding Program (Pnae), after five years without corrections and a 35% lag with the accumulation of inflation.
According to the government, 5.5 billion reais is expected to be invested in the school canteen program, helping around 40 million public school students
In addition, the government also provides a program to fight drought, called Água para Todos, and the Food Acquisition Program (PAA), for the distribution of food to needy families.
An economic program is also underway which will allocate around R$2 billion to micro and small entrepreneurs through the BNDES.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
