Government wants support from businessmen also to approve administrative reform

In addition to supporting the PEC dos Precatórios in the Senate, the Minister of Economy, Paulo Guedes, asked businessmen to express support for the approval of the administrative reform, which changes the rules for hiring civil servants and would result in savings of R$300 billion.

To interlocutors, minister Guedes has said that the approval of the reform would make room for the payroll exemption measure, which will benefit the business community. So far, however, the PEC is the main bet to offset the announced tax cut. Guedes speaks of a reform that even the government did not strive for approval.

The administrative reform was submitted by the government in September of last year. But it is among the texts forgotten by Congress, without articulation even by Planalto itself. For the president of the Brazilian Chamber of Civil Construction Industry, José Carlos Martins, the administrative reform is the main reform that Brazil would need to make today. But, the impossibility of the text, and the urgency of fiscal measures, justifies the support of businessmen to the PEC dos Precatórios.

“Something needs to be done in order not to stop, it is not possible in a situation of spending capping from one year to the next to increase from R$ 20 billion to R$ 90 billion. STF requires ceiling and requires payment at the same time. Some measure needs to be resolved, in this case this is the one being proposed. I don’t know if it’s the best, but it’s the one being proposed and that’s why it needs to be supported”, he said.

The PEC is in the Senate. To be approved, it needs to go through the Constitution and Justice Commission, and also two rounds in plenary.