Parliamentarians who are part of the Free Market Front (FPLM) warn that the government’s proposal to end the FGTS anniversary withdrawal could increase Brazilians’ debt. This is because, he says, people must end up resorting to more expensive types of loans without this additional annual resource.
The deputies are working together to promote an act this week, in the Chamber, to block the proposal by Minister Luiz Marinho (Labor and Employment). He says he had the approval of the president (PT) to move the initiative forward.
“This proposal restricts the economic freedom of Brazilians. The birthday withdrawal and its anticipation are great facilitators of Brazilian life, in addition to representing a fundamental instrument of financial freedom for many indebted families”, said deputy Alberto Neto (PL-AM), one of the members of the FPLM in an interview with Folha de S. Paulo published this Sunday (10).
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The action entitled “The end of the FGTS anniversary withdrawal: the reduction in the supply of credit and the impact on the lives of Brazilians” will be held on Wednesday (13), in the Noble Hall of the Chamber of Deputies, and aims to question Marinho’s allegations to terminate this benefit.
The minister states that the anniversary withdrawal reduces the FGTS by around R$100 billion per year, which affects investments in housing, and argues that a new payroll credit model allows workers to use the fund as a guarantee in the event of dismissal. .
The birthday withdrawal was created in 2019 during the term of the former president (PL) to stimulate the economy by putting more money into circulation. The executive director of Instituto Mercado Livre, Rodrigo Marinho, who assists the FPLM, states that the end of the modality would force people in situations of economic vulnerability to resort to emergency loans with higher interest rates.
Marinho said he is in talks with Congress to send the proposal, but is the target of resistance from the opposition and the financial market itself, which fears that it will affect the credit market.
For the minister, the benefit affects not only public accounts by removing resources from the fund used for housing programs. The worker himself is affected, as he is prevented from withdrawing the full amount in case of dismissal and only has a 40% termination fine paid by the company.
Joining the birthday withdrawal is optional for workers and can be used annually depending on the amount in their FGTS account.
