Economy asks Congress for R$100 billion in expenses in the 2022 Budget

Faced with the need to review mandatory expenditures and ensure Brazil Aid of R$ 400, the Ministry of Economy sent a letter to the National Congress asking for the inclusion of new expenses in the 2022 budget. The vote on the budget piece is scheduled for the next 17th .

The inclusion will depend on the decision of the parliamentarians. The letter was sent directly to the general rapporteur of the Budget, Hugo Leal (PSD-RJ), and to Senator Rose de Freitas (MDB-ES), president of the Mixed Budget Committee (CMO). The preliminary opinion of the Budget allowed this type of official letter, as the deadline for sending an amending proposal from the Executive had expired.

With the approval of the Proposed Amendment to the Constitution (PEC) of Precatório, President Jair Bolsonaro’s government will have fiscal space of R$ 106.1 billion to increase spending in 2022, the election year.

If inflation rises, the slack will increase even more, as will the need to review mandatory spending. The PEC, however, was enacted in a sliced ​​fashion, with only part of the fiscal space guaranteed. The remainder still depends on approval by the Chamber.

The folder’s letter points out the need to increase expenses for social security benefits, unemployment insurance, salary bonuses, continued benefits and other mandatory expenses.

“Thus, in the document, the Ministry of Economy considers that it is ‘prudential’ for the budget law to be made compatible with these obligations before approval”, says a note from the folder. In total, this part requires an adjustment of R$ 39 billion in the Budget.

In addition, the ministry suggests an increase of R$ 54.6 billion to fund the Auxílio Brasil of R$ 400, R$ 4.5 billion for the acquisition and distribution of vaccines and R$ 1.9 billion for the gas aid. According to the Estadão/Broadcast revealed, the economic team calculates that, after the approval of the PEC, there are still R$ 2.6 billion of space to accommodate the expenses.

In Congress, congressmen are articulated to use the fiscal space and supercharge the amendments stamped by deputies and senators, especially the sums of the general rapporteur, which are at the center of the secret budget.

Therefore, the linking of PEC’s fiscal space to Brazil Aid and social security expenses caused an impasse between the Chamber and the Senate. Senators critical of the proposals fear the rejection of this link in the final approval of the PEC.