Vice-president-elect Alckmin defended the deconstitutionalization of the spending limit
BRASÍLIA – Members of the President’s team Lula consider negotiating inclusion in the Proposal to amend the Constitution (PEC) of the Transition of a device which provides for the reform of the expenditure ceiling through a complementary law.
The password was given on Thursday 17 by the vice president-elect, Gerald Alckmin🇧🇷 In an interview with GloboNews, Alckmin defended the deconstitutionalization of the spending ceiling, the rule that limits the growth of spending to inflation.
The deputy argued that “it seems logical” to remove the provision from the Constitution. And then discuss a law with the market, society, with the parties, which indicates an “evolution in the trajectory of spending and debt”.
Alckmin does not explicitly talk about doing so now in the Transition PEC, but there is an attempt to articulate this signal now so that legislation for a new tax framework is passed in 2023, according to the report. Stage🇧🇷 There are supporters of the idea among transition economists, say sources involved in negotiating the proposal.
Ex-President Michel Temer himself, when he managed to approve the spending ceiling, had already tendered a reform for after 10 years through the constitutional law. Constitutional amendment 95 of the ceiling, approved in 2016, provided for the reform of the 2026 rule through a supplementary law, without having to amend the Constitution.
But this command was withdrawn in the vote on the PEC dos Precatorios, in 2021, on the basis that the reform had already been done. In this PEC, the parliamentarians modified, on a case-by-case basis, the method of correcting the HICP to the maximum limit to open up more spending space in 2022, the year of the elections. A change classified as “puxadinho” to expand the budget in 2022.
The idea is to reproduce the PEC article, not necessarily with the same wording, but something similar. The central point of this proposal, according to the sources, is to provide for the reformulation of the framework with a complementary law, which deconstitutionalizes the tax regime.
The quorum for the approval of the complementary bill is the absolute majority of the two chambers (41 senators and 257 deputies). A constitutional amendment, on the other hand, depends on three-fifths of the vote in two rounds of voting in each of the legislative chambers (equivalent to 308 votes in the House and 49 in the Senate).
One of the concerns of investors with the PEC Transition, in addition to the R$ 200 billion volume of expenditure expansion, is precisely the lack of indications on the ceiling replacement rule, since the text does not provide a deadline for the end of the withdrawal of the Bolsa Familia Rule.
Without it, the reading is that change could end up not being made during President Lula’s term. The same rapporteur for the budget, Senator Marcelo Castro (MDB-PI), has pronounced himself in this sense in recent days, increasing the concern of the market: “I predict that no one will talk about the spending ceiling anymore. There will be no need, there will be room ” it read at the time.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
