Treasury bets on PEC dos Precatórios and has no plan B, says secretary

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The secretary of the Treasury, Paulo Valle, reiterated this Monday (29) that the economic team’s bet is on the approval of the PEC of Precatório to enable the Brazil Aid of BRL 400 in 2022, stating that there is no plan B to make the investee viable.

“The minister (of the Economy, Paulo Guedes), the secretary Esteves (Colnago) has already commented several times, we do not work with plan B. We work with the approval of the PEC”, he said at a press conference.

The PEC initially messed with the rule for the payment of court orders by the Union, to reduce the heavy bill of court rulings definitively lost.

Afterwards, the proposal became also include a change in the spending ceiling correction window. Together, the two measures will open a space of R$ 106.1 billion in the 2022 Budget.

Sent by the government to the Congress in August, the PEC was already approved in the Chamber, but it has not started to be appreciated in the Senate, where it faces resistance and where it also needs the approval of three-fifths of the parliamentarians voting in two rounds.

Valle sought to emphasize that the government is focused on the PEC and that it will even give room for budgetary maneuver in case there is a worsening in the health scenario amidst the spread throughout the world of omicron, a new variant of Covid-19.

“We believe in the approval of the PEC. We do not work with any other hypothesis than the PEC”, he stated.

A source with knowledge of the negotiations told Reuters that the government does not rule out the possibility of having to resort to the War Budget once again to make the payment of Brazil Aid feasible, but considers this alternative to be “chaotic” for fiscal issues and still will try this week to attract votes for the approval of the PEC of Precatório.

In 2020, Guerra’s PEC paved the way for extraordinary expenses associated with fighting the Covid-19 pandemic, which did not need to comply with fiscal rules such as respecting the spending ceiling.

Asked about the omicron variant and how the government planned to face a possible new wave of coronaviruses, Valle replied that it is still too early to have this diagnosis.

“We depend a lot on the assessment of the Ministry of Health and it will update us on the need to act,” he said.

Reference: CNN Brasil

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