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The mayor, federal deputy Rodrigo Maia (DEM-RJ), previously said that the possibility of extending the state of calamity, decreed during the new coronavirus pandemic, for another three months “does not exist.” According to him, this would mean the extension, also for another three months, of the Proposed Amendment to the Constitution (PEC) of the War Budget, which “would be a very bad sign regarding the fiscal anchor.”
Initially, the state of public calamity will end at the end of December 2020. However, in Congress there are articulations for it to cover another three months, which would leave room for the benefits linked to the War PEC to also last beyond 2020..
When evaluating the issue, Maia recalled that the Brazilian primary budget today has “little fat”, which affects the government’s ability to maintain emergency aid, launched during the pandemic, for longer. According to the mayor, there are those who believe that it is possible to “push” aid beyond next year, without any problem. Maia, however, sees the issue differently.
“The structure created to face the pandemic must end in December 2020,” he said. “If there is a change, it will affect the lives of Brazilians much more,” said the mayor, who participates this Saturday morning in a virtual event of XP Investimentos.
Maia also recalled that representatives of public office “are elected to build solutions.” “And if the solutions were simple, I didn’t need representatives,” he said. Maia cited the possibility of creating a minimum income program, as the government of Jair Bolsonaro wants, through the reduction of tax incentives. However, he acknowledged that this “is not easy, unfortunately.”
The mayor also stated that the debates on the so-called Emergency PEC cannot be linked to the new revenue program. “We missed a bit in the drafting of the PEC, because the triggers are activated after the spilled soup,” he said, referring to the mechanisms that will be activated when the spending ceiling is put at risk. “The regulation of the spending ceiling, through the Emergency PEC, has greater weight.”
Maia also affirmed that, from 2023, Brazil “perhaps” will have a “better impact” of the pension reform on its public accounts.
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