Federal deputies Pedro Paulo (PSD-RJ), Kim Kataguiri (União-SP) and Julio Lopes (PP-RJ) are expected to close this Wednesday (27) a Proposed Amendment to the Constitution (PEC) alternative to the spending cut package that the government should present it this week.
Planalto’s fiscal measures have been promised for more than three weeks and, according to sources, are blocked due to cuts in the military area. However, the deputies’ proposal reaches other ends and must be deeper to maintain the progress of public accounts.
“What we know so far, of what the government is proposing, is a very timid measure, which does not actually meet the need for structural reform that we have in our country,” said Kataguiri in an interview with Estadão.
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According to the deputies’ alternative proposal, the cuts should affect “tax privileges”, the limitation of super salaries, the end of constitutional floors for health and education, and the decoupling of the minimum wage from the Continuous Payment Benefit (BPC) and Social Security Social. Some of these proposals already have some relationship with what is being discussed in the government, but the content has not yet been officially released by the Treasury.
In addition to these cuts, the PEC proposes limiting parliamentary amendments to the discretionary budget, decoupling them from net current revenue. As an incentive, deputies suggest that the more Congress reduces mandatory expenses, the greater the space for discretionary spending.
According to calculations by the Chamber’s Budget Consultancy, this PEC could generate savings of R$1 trillion in 10 years, in addition to reducing interest rates and inflation, cutting mandatory expenses and expanding public investments.
Meanwhile, Finance Minister Fernando Haddad and President Luiz Inácio Lula da Silva (PT) are expected to present the government’s proposal this week to the President of the Senate, Rodrigo Pacheco (PSD-MG), and the President of the Chamber, Arthur Lira (PP-AL).
Lira has already expressed the expectation that the package will be voted on in Congress by the end of the year after the regulation of the tax reform, but the official content has not yet been released by Palácio do Planalto.
