Chamber approves emergency PEC in first round



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In the early hours of Wednesday (10), the Chamber of Deputies approved, in the 1st round, the proposal to reform Constitution 186/19, also called Emergency PEC. The text still has to be approved in the second round, again by three-fifths of the deputies, before being promulgated by the House and Senate Boards.

There were 341 votes in favor and 121 votes against the opinion of the rapporteur, Congressman Daniel Freitas (PSL-SC), who recommended approval without changes to the text from the Senate last week. There were 10 abstentions.

In a session scheduled for 10 am on Wednesday (10), the deputies will analyze ten salient points presented to the text in an attempt to change parts of the PEC. Most of them, from opposition parties, intend to reduce the fiscal restrictions imposed and eliminate the R $ 44 billion limit to pay emergency aid.

The PEC foresees the recreation of the aid in exchange for measures of fiscal rigidity. With this increase in public spending, the government will have to cut other costs, in some cases permanently.

The approved text is the result of the merger of three PECs sent by the federal government at the end of 2019: the proposal that reformulates the Federative Pact, the original Emergency PEC and the PEC that separates money from public funds.

Due to the lack of consensus, some more controversial points were left out, such as the elimination of constitutional floors for health and education spending.

The finalization of the transfers of 28% of the collection of the Social Integration Program (PIS) and the Public Officials Asset Training Program (Pasep) to the National Bank for Economic and Social Development (BNDES) was also excluded from the voted text. .

The reduction of up to 25% of the salaries of public officials with a proportional reduction of the working day, the payment of salary bonuses below the minimum and the untying of various benefits due to inflation, which were discussed in the Senate, did not enter in the final proposal.

In exchange for the adjustment measures, the text authorizes the allocation of R $ 44 billion for the recreation of emergency aid, a social benefit that served the families most affected by the Covid-19 pandemic, with extraordinary budget credits, which remain out of the spending ceiling.

A public calamity clause included in the PEC made it possible to exclude the costs of the new Golden Rule program (a kind of public debt ceiling to finance current spending) and the primary deficit target, which this year is set at R $ 247. One billion.

The granting of a new round of emergency aid depends on an interim measure with the new benefit rules. The value of each payment is not defined.

(With Agência Brasil and Agência Senado)

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