The dollar rose 2.21% at the opening this Thursday (17), to R$ 5.5008, with the market reacting to the announcement made on the eve of the draft of the so-called Transition PEC.
The Ibovespa futures fell 1.70%, at 108,620.
On Thursday, President-elect Luiz Inácio Lula da Silva (PT) also criticized the spending cap. He is at COP27, in Sharm el-Sheik, Egypt, and spoke to representatives of social movements.
The day after the Transition team delivered the draft of the PEC to Congress, Lula stated that “it’s no use thinking only about fiscal responsibility” and he stated that when talking about spending ceilings, money is taken “from health, education and culture”.
“When you put in something called a spending cap, all that happens is you take money away from health care, education, culture.”
Reason for apprehension in the markets, the draft presented the day before by the elected vice president, Geraldo Alckmin, brings a proposal to “exceptionalize” the BRL 175 billion spending ceiling for the payment of Bolsa Família from 2023 in the amount of BRL 600 , with an additional R$ 150 per child, without a fixed deadline.
The suggestions presented by the transition team also include an authorization for part of the extraordinary income to remain outside the ceiling and can be redirected to investments, within a limit of 23 billion reais, and also proposes to remove donations to universities from the spending ceiling rule. and funds related to the preservation of the environment.
*Under update / with Reuters
Source: CNN Brasil
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