The Senate approves the Transition PEC in the 1st round

The Senate approves the Transition PEC in the 1st round

The basic text was approved with 64 votes in favor and 16 against. The goal is to make funding available for social programs such as Bolsa Família, in addition to Lula’s electoral promises, such as the readjustment of the fiscal minimum wage of 145 billion reais – 30 billion less than the value of 175 billion presented by the speaker of the proposal – for payment of the Bolsa Família program.

The Proposal to amend the Constitution sent to Congress by the transition group of President-elect Luiz Inácio Lula da Silva also provides for an additional 23 billion for investments outside the spending ceiling, in the event of extraordinary revenue collection, which increases the impact of extra spending at 168 billion reais.

The future government has agreed to reduce the estimated amount of payment of the social benefit and present a proposal by August 2023 to create a new tax framework.

The text was approved in the 1st round with 64 votes in favor and 16 against. The PEC needed the approval of 49 of the 81 senators present in the plenary, in a two-round vote.

The proposal guarantees the new government a margin in the Union budget for the next two years to keep 600 reais a month from the Bolsa Família starting in January, replacing the Auxílio Brasil implemented by the current government.

Strengthen social programs

The government transition team has also promised a further installment of 150 reais for each child up to 6 years of age and hopes to use part of the budget margin opened by the PEC to honor other campaign promises, such as maintaining the Popular Pharmacy programme, in addition to the readjustment of the school canteen and the minimum wage.

The PEC does not necessarily link resources to the Bolsa Família, which could open a loophole for MPs to reallocate funds in the budget for the next few years.

The rapporteur for the Transition PEC, Alexandre Silveira (PSD-MG), has included in the text the limit of 175 billion proposed by the future government, an amount that corresponds to the total budget of the Bolsa Família foreseen for 2023.

The value ended up being reduced after requests from parliamentarians allied with the government of Jair Bolsonaro.

The reduction of 30 billion reais does not put Bolsa Família at risk, given that the 2023 budget proposal already reserved 105 billion for Brazil Aid.

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Source: Terra

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