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BRASÍLIA – The solution for the new social program of the government (Renda Cidadã) that has been sewn between the parliamentarians, the government and the Federal Court of Accounts (TCU), will involve cutting costs. According to sources involved in the discussions, the so-called extract from the officials of the three branches is being targeted.
Citizen income:The proposal will be ‘inside the roof’, says the speaker after meeting with Guedes
Thus, the salary cap for public officials would effectively be R $ 39.2 thousand, remuneration of the ministers of the Federal Supreme Court (STF). The measure, if approved, has the potential to open space in the Union budget between R $ 10 billion and R $ 15 billion.
Read More: Proposal of Citizen Income will be ‘inside the roof’, says speaker after meeting with Guedes
The consolidation of social programs is still on the table, but the adjustment in the case of the Salary Bonus (PIS), for example, where there is fat, would be marginal, given the statement reiterated by President Jair Bolsonaro that he will not take from the poor to give “Very poor”.
In this case, the alternative would be to restrict access to the subsidy, from two salaries (R $ 2,090) to a salary and a half (R $ 1,567.50) and increase from 30 days to 90 days with a formal contract to be entitled to the benefit.
Term extended: Without a source of funds, the decision on Citizen Income should be postponed after the election
– There will be some measure to cut spending by the richest groups of the population. Consolidation of social programs may even occur, but the effect will be marginal. It will not be enough to solve the problem – said a source familiar with the negotiations.
There are those in the government who advocate a tax increase, but that does not solve it either because the biggest obstacle is the ceiling on public spending, which limits the growth of spending to inflation.
Taxing profits and dividends and ending the discount granted to taxpayers who opt for simplified income tax returns are measures that are on the radar. But there is no consensus on whether this would be the best time, given the economic recession impacted by the coronavirus pandemic.
Citizen income: See expert proposals to support Bolsonaro’s social program
The rapporteur for the Constitutional Amendment Proposal (PEC) to cut spending and budgets, Senator Márcio Bittar (MDB-AC) said this Monday, after meeting with the Minister of Economy, Paulo Guedes, that the solution to be presented in his opinion, it will first go through the economic team sieve and respect the spending ceiling.
Previously, Bittar met with Bolsonaro and the president of the Chamber of Deputies, Rodrigo Maia (DEM-RJ).
