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Chamber of Deputies discusses PEC dos Precatório in 2nd round; follow up

The Chamber of Deputies starts this Tuesday night (9) the discussion in the second round of the Proposal for Amendment to the Constitution (PEC) of the Precatório. As a result, lawmakers must vote on the proposal, which, as a rule, must take place in two rounds, with at least 308 votes in each of them, to be approved. If approved, it goes to the Senate for consideration.

Throughout the day, deputies analyzed 11 highlights of the basic text of the proposal, approved at dawn on Thursday (4) with 312 votes in favour. Of the 11 highlights – devices that allow changes to the content of the article – one was accepted.

The highlighted emphasis prohibits the flexibilization of the Golden Rule, norm that establishes that the government has to issue debt beyond its investment capacity, except in cases of current expenses – referring to the cost of the public machine. The passage, which changed the fiscal rule, provided that non-compliance with the Golden Rule would be authorized by the National Congress even during the vote on the following year’s Budget.

With the approval of the highlight, the standard will continue as it is today. Since 2018, the Golden Rule has been broken by the federal government. This year, the insufficiency is estimated at R$93.9 billion.

Interstice

The Plenary of the Chamber of Deputies approved a request to waive the regimental break to vote today for the 2nd round of the PEC dos Precatórios. Opposition parties present requests to try to make the voting in the second round of the PEC dos Precatório unfeasible. The Plenary can dispense with the interval between the first and second rounds with the approval of an application, but the opposition decided against it. Oppositionists also filed requests for a postponement of the vote and other obstruction measures.

Deputy Ênio Verri (PT-PR) stated that the proposal approved in the first round allows for speculation in court orders. “We need to reflect more deeply on what was voted on. We are ending the population’s acquired rights and, at the same time, creating a market for the people who received it”, he said.

Understand

The Bolsonaro government’s commitment to opening fiscal space in 2022 to finance the new social program Auxílio Brasil, which replaces Bolsa Família, the initial purpose of the precatório PEC was to postpone and split the payment of the Union’s debt in precatório and court rulings . The amount for next year is almost R$90 billion.

With mandatory payment provided for in the Federal Constitution, court orders are debts owed by the government to individuals, legal entities, or even from a federation entity to another, already definitively decided – final and unappealable – by the Judiciary. The debt can be owed by municipalities, states or the Union.

Amidst the negotiations, the text gained provisions that expand the spending ceiling and circumvent other fiscal rules. According to the Ministry of Economy, the space opened up by the proposal will be around R$91 billion, R$44.6 billion of which is the result of the sub-ceiling stipulated for the payment of court orders and another R$47 billion due to the change in the ceiling correction rule of spending.

Auxílio Brasil alone will be responsible for consuming R$ 50 billion of the total amount. Part of the remaining funds should be used to increase the amount to be transferred to parliamentarians in 2022 through amendments to reports, known as RP9, and the electoral fund.

*With information from Agência Câmara, Larissa Rodrigues and Anna Russi, from CNN

Reference: CNN Brasil

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