The Senate discusses the exclusion of Bolsa Família from the “triggers” of the PEC Emergency

SÃO PAULO – Federal Senate party leaders discuss the withdrawal of Bolsa Família from the limitations established in the Proposal for an Emergency Constitutional Amendment (PEC), taken as a bet by the federal government to allow a new round of emergency assistance. A new version of the alternate must be read by the rapporteur, Senator Marcio Bittar (MDB-AC), still on Tuesday (2), in plenary.

The suggestion, made by Senator Alessandro Vieira (Citizenship-SE), entered the final stretch of the debates on the proposal in the legislative house. The congressman, diagnosed with Covid-19, sent a letter to the rapporteur suggesting the exclusion of the social program from the prohibitions provided in the “triggers” created by the text.

In practice, the movement would allow to expand the benefit or the creation of a new income transfer program to face the scenario of poverty and extreme poverty in the post-pandemic of the new coronavirus.

“Understanding the importance of limiting the creation of mandatory spending and adjusting mandatory spending above inflation, it seems pertinent to us except for the benefits of combating extreme poverty and poverty, which are the benefits of the Bolsa Família Program today,” he says. the parliamentarian. in the letter.

“We fear that the drafting of the report of these provisions could prevent the government from instituting a new substitute benefit for Bolsa Família (such as Renda Brasil or Renda Cidadã, whose proposal has recently worked). Or, in addition, that Bolsa Família expands, albeit modestly. It should be noted that, as we know, the values ​​currently involved in the Program are very small, and do not threaten fiscal sustainability (0.5% of GDP, with no upward trend) ”, he justifies.

The Emergency PEC establishes rules for the activation of “fiscal triggers” when the level of mandatory expenditures of the Union, states or municipalities exceeds 95% of total primary spending – which, according to the projections of the Independent Tax Institution (IFI), it would only happen from 2025, or during the duration of situations of public calamity, current case.

Here are the fences provided in both cases:

a) Concession, in any capacity, of advantage, increase, readjustment or adaptation of remuneration to members of the Power or body, public and military servants and employees, except those derived from a final judicial decision or legal determination prior to the initiation of the request. of measures;

b) Creation of a position, job or function that implies an increase in expenses;

c) Change in the career structure that implies an increase in expenses;

d) Admission or hiring of personnel, in any capacity, except:
1. managerial and managerial position replacements that do not lead to increased expenses;
2. replacements resulting from vacancies in permanent or permanent positions;
3. The temporary contracts referred to in subsection IX of art. 37; Y
4. replacements of temporary personnel to render military service and of students of the military training corps;

e) Holding a public tender, except for the replacement of vacancies provided for in subsection “d”;

f) The creation or increase of aid, advantages, bonuses, bonuses, representation fees or benefits of any kind, including those of a compensatory nature, in favor of members of the Power, the Public Ministry or the Public Defender’s Office and public servants, public employees and military personnel, or even their dependents, unless it is derived from a final judicial decision or legal determination prior to the beginning of the application of the measures referred to in this article;

g) Creation of mandatory spending;

h) Adoption of a measure that implies an adjustment of mandatory spending above the variation in inflation;

i) Creation or expansion of financing programs and lines, as well as remission, renegotiation or refinancing of debts that imply expansion of expenses with subsidies and subsidies;

j) Grant or extend an incentive or tax benefit;

If it is interpreted that the resources of Bolsa Família are part of the mandatory expenses of the Budget, the rules established by the PEC would affect the program, preventing any adjustment or expansion during the validity of the fiscal triggers.

Behind the scenes, a discussion that gained momentum with Alessandro Vieira’s proposal was the possibility of removing Bolsa Família from the spending limit rule in 2021. But interlocutors from parliamentarians have said that the proposed text does not address this, but of the exclusion of the fiscal triggers of the program foreseen in the proposal.

In practice, the two routes could allow increasing expenses through the income transfer program, but the first route can be interpreted by economic agents as a greater risk for the fiscal rule.

A source heard by this report said that the rapporteur will address the issue to discuss it today with the economic team, so that it can then be included in the text that will be voted on Wednesday (3).