The fuel package, designed by the federal government to try to alleviate inflationary pressure on low-income consumers, should even include a subsidy to guarantee free public transport for people over 65.
The federal administration plans to include in the proposal, which is expected to be processed in the form of a bill, an amount of R$ 2.5 billion for the creation of a mobility program for the elderly in urban areas.
Aid for states and municipalities is provided for in the Elderly Statute, was paralyzed in the Chamber of Deputies since February and would be valid until the end of this year. The idea, by including the initiative in the fuel package, is precisely to speed up its approval.
In all, the federal administration calculates that the fuel package will have a fiscal impact of R$ 34.8 billion, resources paid outside the spending ceiling. Most of them would come from the reallocation of an amount that, initially, would be destined to the compensation of the federation units that had zero ICMS on diesel and cooking gas.
The expectation is that the final format of the proposal will be closed by Tuesday (28) to be voted on this week in the Federal Senate. The fuel package should include an increase in Auxílio Brasil to R$600, a voucher for truck drivers of R$1,000, an increase in the gas allowance to R$100 and even a subsidy for the ethanol market.
The idea of the voucher for truck drivers is to benefit 900,000 self-employed workers in the sector, a measure whose fiscal impact is calculated by the federal administration at R$ 5.4 billion. The increase in Auxílio Brasil would have a cost until the end of the year of R$ 21.6 billion.
Despite the Planalto Palace’s willingness to create a subsidy package, there are still doubts as to whether it could be implemented in an election year. This is because article 73 of the Electoral Law establishes that, in an election year, “the free distribution of benefits by the public administration is prohibited”.
The subsidy, however, is allowed “in cases of public calamity and state of emergency”. That is why the federal government is discussing the possibility of declaring a state of emergency because of the war between Russia and Ukraine, which is facing resistance in the National Congress.
If the subsidy package is approved without the state of emergency, there is a risk that the discussion will be judicialized and the aid measure will not be implemented by the federal government this year.
See the impact of the measures provided for in the fuel package, according to a calculation made by the federal government:
- Brazil Aid of R$ 600 – BRL 21.6 billion
- Voucher for Truck Drivers of R$ 1 thousand – BRL 5.4 billion
- Subsidy for Ethanol – BRL 3.8 billion
- Transport for Seniors – BRL 2.5 billion
- Gas Allowance of BRL 100 – BRL 1.5 billion
- Total – BRL 34.8 billion
Source: CNN Brasil
