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The components of the Ministry of Economy are already inclined to extend emergency aid in 2021 in order to offer a financial support in order to mitigate the economic impacts caused by the Covid-19 pandemic.
For now, the Federal Government is already studying releasing the benefit to informal workers affected by the coronavirus pandemic, which has been worsening in 2021, according to sources linked to the issue.
Several deputies and also politicians already take for granted the increase in public spending to face the country’s health crisis. This is because once the second wave of the disease seems to take hold of Brazil. The sources preferred not to cite names to speak on condition of anonymity, as the discussions are still in the preliminary phase and are secret.
Last Wednesday (20) it was announced that Paulo Guedes, Minister of Economy, and his technicians stopped ruling out the return of emergency aid. Now, although they still do not work with a scenario behind the program, it is already seen as one of the “last alternatives” of what they consider “a wide menu of measures”.
The assessment the team is currently making is that the recreation of the emergency aid would not be consistent. The program cost R $ 294 billion to the public coffers and the government considers that it may be inconsistent to resume aid because the cities are now functioning “normally”, which was not the case when it was inaugurated, with the interruption of activities and the closure. trade.
Government studies new phase of emergency aid for R $ 200 for three months
The Ministry of Economy is studying a new phase of payment of emergency aid. The daily Valor Econômico reported that the government’s idea is to carry out a new stage of aid, but focusing only on the neediest informal workers.
The aid began to be paid in installments of R $ 600 for millions of Brazilians. After a new extension, fewer beneficiaries received the payment, which was R $ 300. Now, the government is considering paying another three months, with R $ 200 per month. The amount is similar to the one currently paid by Bolsa Família. The program would be reimbursed through the Proposed Emergency Constitutional Amendment (PEC).
With this, the aid would once again be paid to some Brazilians through extraordinary credits, without the costs being considered in the Union’s spending ceiling. To get space in the public budget, it is necessary to freeze the general expenses of the government and the state. One of the changes would be to cut back on the automatic readjustment of public servants. According to the daily Valor Econômico, if the measure is approved by Congress, there is the possibility of reducing part of the fiscal cost of the new aid.
Valor Econômico also announced that Congress may also modify the terms of the proposal made by the Union, this happened at the beginning of the new coronavirus pandemic. At that time, the Bolsonaro government suggested that emergency aid pay R $ 200 per month. But the initial value of the program was R $ 600. A few months later, the approved extension was R $ 300 per month.
Last week, Paulo Guedes, the economy minister, said the government was looking for ways to boost Brazil’s economy during the second wave of the pandemic. Therefore, emergency aid may return, if the number of covid cases and deaths continues to rise.
“If the pandemic has a second wave, with more than 1.3 thousand, 1.5 thousand, 1.6 thousand deaths [diárias]We will know how to act with the same decisive tone, but we must see if this is the case or not… If the disease returns, we have a crisis protocol, which has been improved, ”said the minister during a virtual event organized by Credit Suisse.
