PEC dos Precatórios: rapporteur makes new concessions by endorsement in the Senate plenary

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In search of greater support for the approval of the PEC dos Precatório in the plenary of the Senate, the rapporteur of the text, senator Fernando Bezerra (MDB-PE), conceded in some more points of the proposal. Among the main changes in the new opinion is the linking of all open fiscal space with the sub-ceiling for the payment of court orders to Auxílio Brasil and Social Security.

The measure will be applied annually to “surplus” resources by the limit on the payment of court orders until 2026. That is, for 5 years, the new social program and the security spending have a source of funding guaranteed by the limit on the payment of court orders.

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The purpose is to ensure that funds cannot be used for other expenses, such as rapporteur amendments. “Thus, all the effort made by the National Congress in the search for resources will be linked to the most urgent social purposes in this moment of crisis”, says the text.

However, as the source of funding for the program and for the insurance are not permanent income, in 2026 new compensations may be necessary. These can be done by a new source of income, by cutting another expense or even by revising the Fiscal Responsibility Law (LRF), which requires a financial source to pay a new expense.

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The report also allows that, exceptionally in 2022, Auxílio Brasil exceeds the individualized limits for the primary expenses of the Executive Branch. Both for next year and for the following years, Bezerra included an excerpt that guarantees that the Auxílio Brasil follows what is required by the fiscal legislation – Fiscal Responsibility Law -, which asks for a source of financing.

See the calculation forecast for the program’s resources in the coming years:

– In fiscal year 2023, the program resource will be calculated by the difference between the total of court orders issued between July 2, 2021 and April 2, 2022, and the limit established for payment of court orders for the year 2023;

– In fiscal years 2024 to 2026, the calculation will be based on the difference between the total of court orders issued between April 3 of two years prior to April 2 of the year prior to the fiscal year, and the sub-ceiling valid for the same fiscal year.

Thus, Bezerra still limited until 2026 the limit for the payment of precatório within the ceiling. Thus, from 2027 onwards, the full payment of the Union’s debts in court judgments becomes mandatory again.

Provisions that establish rules for securitization (sale) of Active Debt were also removed from the text. The measure was criticized for allowing the revenue from a tax with a certain destination to be allocated to another expense.

latest changes

The text of the PEC dos Precatórios has as its backbone to pay half of the value of the Union’s judicial debts next year, and to change the calculation of the spending ceiling, which would open up R$106 billion.

Last week, Bezerra had already brought changes in relation to the text that came from the Chamber, such as ensuring that all open space in the budget is linked to the payment of social assistance. In addition, it established the payment of R$ 400 from Auxílio Brasil as permanent.

Then, to facilitate approval by the Senate Constitution and Justice Committee (CCJ), where the text was approved on Tuesday (30), it removed the Fundef (Fund for the Maintenance and Development of Elementary Education and the Valorization of Teaching) from the spending ceiling.

These judicial debts with the states amount to around R$16 billion. Under the PEC, 40% of this amount will have to be paid in the first year.

Another important change was putting food court orders on the priority list for payment.

On the priority list for payments are those who will receive smaller amounts, up to R$ 66,000, people aged 60 or over and people with disabilities.

Reference: CNN Brasil

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