Júlio Lopes, Kataguiri and Pedro Paulo (PSD-RJ) want to save R$ 1.1 trillion in 6 years and criticize the lack of consensus
The authors of (Proposed Amendment to the Constitution) alternative to cutting expenses said this Wednesday (27.Nov.2024) that the government’s proposal– even without being officially announced– is “shy” and insufficient.
The deputies’ proposal (PP-RJ), (União Brasil-SP) and (PSD-RJ) wants to save R$1.1 trillion in 6 years, with measures such as unlinking benefits, revoking minimum wage levels for Health and Education and limitations on so-called super salaries.
The PEC was presented on the eve of the federal government’s expected announcement on spending cuts. One by the Minister of Finance, Fernando Haddad, is expected at 8:30 pm. They are targeting, in addition to super salaries, those who receive up to R$5,000.
“Our prediction is that in 2026 it [a PEC] it will be something around double or triple what the government has proposed, which is something around R$20 billion or R$30 billion. Now with the income tax exemption, I don’t even know if this objective will be achieved”, said Pedro Paulo.
As o Poder360the government’s proposal wants to save R$70 billion in 2 years. The economic team and social ministries were locked in an arm wrestling match over the budgets that should be impacted and mitigate the effects on Lula’s popularity.
The lack of consensus meant that the announcement of the cuts took over the economic team for the 5th consecutive week. The government’s proposal includes changes to the rules on minimum wages, salary bonuses and military pensions.
It was the internal conflict that, according to the authors of the PEC that will still collect signatures to be processed, would show a “lack of belief” on the part of the government in the impacts of the spending cut.
“We have a good relationship with Minister Haddad and we believe in the work he is doing. What we want is to make a contribution in the sense that what is being broadcast in the media is not enough, it is less than what needs to be done”, declared Julio Lopes.
Asked about Arthur Lira’s involvement in the proposal, Júlio Lopes told Poder360 that the president of the Chamber agrees with the content of the proposal, but that the scope regarding the cut in public spending lies with the federal government.
The proposal needs 171 signatures from federal deputies to be processed in the House. The expectation is to receive support from the opposition and part of the authors’ parties.
