Senator José Aníbal (PSDB-SP) collected the 27 signatures needed this Wednesday (10) to present a Proposal for Amendment to the Constitution as an alternative to the PEC dos Precatório approved by the Chamber of Deputies, as a way to finance social assistance actions such as the Brazil Aid. Therefore, the text proposes cuts and periodic review of public spending, without postponing the payment of court orders.
The PEC approved by the deputies will have as rapporteur in the Senate the leader of the government in the House, Fernando Bezerra (MDB), and the forecast is that it may go to the plenary in the last week of November or early December.
In the toucan senator’s alternative PEC, it is estimated that R$ 75 billion would be needed to “adequately fund a new social program to update next year’s budget proposal, forwarded with outdated macroeconomic parameters.”
“The creation of a larger fiscal space is not justified, especially if they are allocated in rapporteur amendments”, justifies Aníbal.
The PEC dos Precatório opens fiscal space estimated at R$91.6 billion, according to the Ministry of Economy. This amount, however, is obtained by revising the spending ceiling and postponing the discharge of court orders, which provoked reactions among economic agents and increased the country’s exchange rate instability.
To reach BRL 76 billion of fiscal space, the alternative proposal defends a cut of BRL 22 billion in revocation of subsidies, BRL 10 billion with the exclusion of Social Security from the expenditure ceiling retroactive to 2016, BRL 16 billion with the exclusion of Fundef court orders from the ceiling, BRL 10 billion in cuts after periodic review of public spending, and BRL 18 billion with the full allocation of budget amendments to social assistance.
“This PEC represents an opportunity for the Federal Senate to demonstrate that it is committed to the social agenda without losing sight of fiscal responsibility”, argues Aníbal.
Reference: CNN Brasil
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