New version of Emergency PEC foresees fiscal triggers, extinction of public funds and cuts in subsidies



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Marcio Bittar (Photo: Jefferson-Rudy-Agência-Senado)

SAO PAULO – The rapporteur Márcio Bittar (MDB-AC) distributed a new version of the PEC (Proposed Amendment to the Constitution) Emergency to the leaders of the Federal Senate this Tuesday (8).

The objective of the parliamentarian is to formally file the text in the internal system of the Legislative Chamber after agreement, so that the measure can advance even before the recess, which begins in two weeks.

Being a PEC, the proposal must be submitted to two rounds of voting in plenary, with a minimum support of 3/5 (that is, 49 senators) in each one. In the Chamber of Deputies, two rounds of voting are also required with the same quorum, corresponding to 308 votes.

The final text presented by Bittar to his colleagues does not foresee the creation of a new social program, which was mentioned on several occasions publicly by members of the federal government and by the rapporteur himself.

The initial idea was for Renda Cidadã to replace Bolsa Família, a brand of the PT administrations, and act as a kind of continuity for emergency aid, scheduled to end this month.

The substitute provides for the initiation of measures to control public spending by the Union, the States and the municipalities. The Three Powers, the Public Ministry, the Court of Accounts and the Public Defender’s Office are included in the text that has not yet been presented.

The proposal allows the activation of spending caps (a rule that limits the advance of spending to the inflation accumulated in the previous year) when it is verified that, in the preparation of the budget proposal, the proportion of mandatory primary spending in relation to spending total primary is greater than 95%.

In the case of sub-national entities, the device is activated when it is verified that, in the 12-month period, the relationship between current expenses and current income exceeds the same percentage. When the proportion exceeds 85%, the triggers can already be fully or partially activated by an act of the head of the Executive Power, submitted to the Legislative Power for appreciation.

Among the measures defined for the adjustment is the prohibition of increasing, adjusting or adjusting the remuneration of officials and the military, “unless it is derived from a final judicial decision or from a legal determination prior to the beginning of the application of the measures” .

The creation of a position, job or function that implies an increase in expenses and eventual changes in the career structure that impact on the public budget is also prohibited, as well as the hiring or hiring of personnel, in any position, except for replacement of leadership positions, management and advisory services that do not entail an increase in expenses.

Neither will public competition be allowed during this period, except for the replacement of planned vacancies, the creation of mandatory expenses of a continuous nature and the creation or increase of aid, advantages, bonuses, bonuses, representation fees or benefits of any nature. .

Tougher measures, such as a 25% reduction in the salaries and hours of public servants, ended up being left out of the text. The version also does not include deindexation actions (withdrawal of the obligation to grant adjustments) or “semi-indexation” (two minimum wage benefits proposal), defended by Minister Paulo Guedes (Economy).

The alternate also determines that the head of the Executive Power must present to the National Congress, within 90 days of the enactment of the reform, a plan to reduce benefits and federal tax, financial and credit incentives, accompanied by the corresponding legislative proposals. and estimates. respective budgetary and financial impacts.

The subsidy cut must be at least 10% in annualized terms and the benefits may not exceed 2% of the Gross Domestic Product (GDP) in a period of five years. Today, they are estimated at around 4%.

The text says that “the breach of the foreseen obligation implies a crime of responsibility of the President of the Republic”. And if the cuts are not considered by congressmen within six months, the imposition of parliamentary amendments will be suspended until the measures are approved.

The version distributed by the rapporteur also provides that the public funds of the Union, States and municipalities created until 12/31/2016 will be extinguished if they are not ratified by a specific complementary law for each one at the end of the second year after the validity. of the reform.

The rule does not apply to the funds provided for in the Constitutions and Organic Laws of each federative entity, including the Law of Transitory Constitutional Provisions; those created to operationalize the income links established in the Constitutions and Organic Laws of the entities and those destined to grant guarantees and endorsements.

The National Public Security Fund (FNSP), National Penitentiary Fund (FUNPEN), National Anti-drug Fund (FUNAD), National Fund for Scientific and Technological Development (FNDCT), National Culture Fund (FNC) and the National Fund for the Defense of the Economy Coffee maker (FUNCAFÉ).

Public revenues not linked to the funds can be used for five purposes: 1) projects and programs aimed at the eradication of poverty; 2) investments in infrastructure aimed at national reconstruction, with priority to the implementation and completion of roads and railways, in addition to the internalization of natural gas produced in Brazil; 3) projects and programs aimed at the security of border regions; 4) revitalization of the São Francisco river basin; and 5) Scientific, Technological and Innovation Research and Development Projects.

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