Presentation of the PEC Emergency report is for 2021, announces Senator Márcio Bittar



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

SAO PAULO – Senator Márcio Bittar (MDB-AC), rapporteur of the PEC Emergency, reported this Friday morning (11) that the final opinion on the proposed constitutional amendment will only be presented in 2021.

The proposal deals with permanent and emergency measures to control spending and fiscal rebalancing and defines trigger activation parameters to comply with the spending ceiling, a rule that limits the growth of public spending for one year to the accumulated inflation in 12 closed months . in June of the previous year.

The text had been presented by the federal government in November of last year together with the so-called Agenda Mais Brasil, but it had had difficulties to advance and, in the last substitute version, it had suffered a profound dehydration. The saving foreseen in the report was R $ 450 million, well below the initial forecast of the rapporteur, of between R $ 25 billion and R $ 30 billion.

With the attention of congressmen in the elections for the presidencies of the Chamber of Deputies and the Federal Senate, the proposal would lose even more space. The inability of current president Davi Alcolumbre (DEM-AP) to contest the renovation in the legislative house opened space for an intense dispute between the seats.

In a note, Bittar pointed out the complexity of the discussions on the subject and the current situation in the country as justifications for the new postponement in the presentation of the text.

“Given the complexity of the measures, as well as the current situation in the country, I decided not to present the PEC Emergency Report for 2020. I think the proposal will be better debated next year, as soon as the National Congress resumes its activities and The political moment is more appropriate, ”he said.

The day before, Fernando Bezerra (MDB-PE), government leader in the Federal Senate, had declared that the PEC’s Emergency report would be published on Friday and could be voted on next week.

In recent days the minutes of the text under discussion have been distributed. One of them paved the way for the generation of expenses outside the spending ceiling for a period of one year, provided that they were covered with income from the decoupling of public funds, in response to a demand from parliamentarians for temporary relaxation of the fiscal rule.

The news was very badly received by the market, and economic agents understood the movement as a kind of “fiscal walk.” In a matter of hours, the economic team issued a note against the possibility, albeit temporary, of relaxing the spending ceiling. Later, Bittar said that the document released was not official and that its text would not have any action in that regard.

The latest version of the report distributed among the leaders allowed the activation of the activation caps when it seems that, in the preparation of the budget proposal, the proportion of mandatory primary spending in relation to total primary spending is higher than 95%. Among the measures would be the prohibition of increasing, adjusting or adjusting the remuneration of officials and conducting public tenders.

The alternate also determined that the head of the Executive Power must present to the National Congress a plan to reduce federal tax, financial and credit incentives and benefits, with a total impact of at least 10% in annualized terms, and the extinction of the public funds created. until the end of 2016.

However, the text omitted the deindexation measures, that is, the elimination of the obligation to grant adjustments. Even “semi-indexing” was ignored, which created the rule only for benefits above the minimum wage. Nor was the possibility of a temporary reduction in wages and hours of public servants included in the substitute.

The speaker also renounced one of his main flags: the end of the mandatory minimum investment of resources in health and education. With the lower savings generated by the text, the possibility of building a new social program, to replace Bolsa Família and the emergency aid, created in the context of the new coronavirus pandemic, was also set aside.

See the full note:

“Since the first half of this year, I have been working on the Emergency PEC reports, an important measure for the restructuring of the country.

In recent weeks I have worked to build a consensus text that will help Brazil solve the serious problems it faces. I consulted the government, congressional leaders, and parliamentarians.

Given the complexity of the measures, as well as the current situation in the country, I decided not to present the PEC Emergency report in 2020.

I believe that the proposal will be better debated next year, as soon as the National Congress resumes its activities and the political moment is more appropriate.

Responsibility and caution are the watchwords ”.

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