Salary adjustment for civil servants requires cutting other expenses, says Sachsida

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The Economic Policy secretary at the Ministry of Economy, Adolfo Sachsida, clarified that the salary readjustment of public servants in 2022 is only possible with the cut of another expense provided for in the Budget.

The issue arose after President Jair Bolsonaro stated, in the Middle East, that he is considering granting an adjustment to all civil servants upon approval of the PEC dos Precatório in Congress.

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“In order to increase salaries for civil servants, I have to reduce other expenses. If there is a democratic demand for this increase, we will show the expenses that will be reduced to generate this increase in expenses”, explained Sachsida during a press conference this Wednesday (17th).

With the exception of the 2020 readjustment for military personnel, the Bolsonaro government has not yet granted any salary increases to civil servants. The 2020 Budget Law proposal, sent to Congress in August, does not provide for the expenditure on readjustments.

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The Budget will gain, however, R$ 91 billion in fiscal space if the PEC dos Precatórios is approved. According to the economic team, R$ 50 billion of this amount is already reserved for the Auxílio Brasil program, which replaces Bolsa Família. Another R$ 24 billion will be earmarked for expenses adjusted by inflation indices, which will also be higher with the change in the spending ceiling correction rule.

Thus, approximately R$ 10 billion remains for free allocation. “I will have a fiscal space. Where should I spend this? Relieving payroll or improving social programs? Or should we still take this space to adjust to a category that lost neither job nor income during the pandemic? They are choices”, commented the secretary.

Last week, President Jair Bolsonaro also announced the extension of the exemption from the payroll of 17 sectors until 2023. Demand from the business sector, the measure may not need financial compensation, as long as it does not affect the government’s primary result target. In other words, making room for new spending to consume the remaining R$ 10 billion in fiscal space.

Reference: CNN Brasil

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