The president of the Senate, Rodrigo Pacheco (PSD-MG), stated that the public spending cut package should reach Congress and that he sees no problem as long as it is part of a “national program”. The proposal, which should be discussed with him and the president of the Chamber of Deputies, Arthur Lira (PP-AL), this week, will go to a vote in December after the regulation of the tax reform.
There is an expectation that President Luiz Inácio Lula da Silva (PT) will call them together with government leaders in Congress to present the proposal, which was finalized this Monday (25) with Minister Fernando Haddad, of Finance.
“This discussion of public spending is urgent and will be the agenda of the National Congress after Tax Reform, in the coming days. Once the Tax Reform is complete, the identification that waste exists must attack all powers”, said Pacheco in an interview with the podcast of senators Jorge Kajuru (PSB-SP) and Leila Barros (PDT-DF).
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The package of cuts prepared by the Lula government has already had all discussions finalized and includes a Proposed Amendment to the Constitution (PEC) and a complementary bill aimed at measures such as combating super salaries in the Executive and changes in links to the minimum wage, such as social benefits – these would have the same rules as the tax framework.
Despite Haddad’s signals, there is still no set date for the meeting with the presidents of the Senate and the Chamber. Lula’s official agenda this Tuesday (26), until the closing of this report, does not indicate any meeting with them.
“We reached an understanding within the government. The president has already decided the last issues”, said Haddad.
Pacheco reinforced that he is not opposed to the inclusion of the Legislature in the cost containment effort, as long as it is part of a national commitment that preserves the proper functioning of institutions.
“If we identify that a linear cut in spending on middle activities needs to be made, I have no problem joining a national spending cut program, as long as the proper functioning of Congress and other institutions is maintained, as long as this is a national commitment”, he stated.
The senator also defended a coordinated effort similar to that carried out in the approval of the Tax Reform. For him, it will be a “national plan” with “the same engagement that we are having in the Tax Reform, bringing together all institutions, to review public spending”.
Regarding the PEC, Haddad stated that the government can include the spending cut package in the proposal that extends the Untying of Union Revenues (DRU), a mechanism that unlinks up to 30% of expenditures stamped for any purpose. This is because the DRU loses validity at the end of the year and needs to be approved in 2024, informed the Brazil Agency.
