After the presentation of the spending cut package by the federal government, public attention is now turning to the National Congress, where the proposals should begin to be processed in the coming days.
The expectation of the Minister of Finance, Fernando Haddad (PT), which has the support of the presidents of the Chamber of Deputies, Arthur Lira (PP-AL)and the Senate, Rodrigo Pacheco (PSDB-MG). But there are doubts as to whether there will be enough time for this, given the busy agenda on the Legislative calendar before the parliamentary recess – with the need to evaluate other important proposals, such as the regulation of tax reform.
The federal government must forward to Parliament a Proposed Amendment to the Constitution (PEC) and a Complementary Bill (PLC) with fiscal measures. The possibility of sending an Ordinary Bill (PL), which would specifically address military expenses, is also being evaluated.
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must be sent in another, separate PL. But the presidents of the two legislative Houses themselves have already said that this last point should only be appreciated by congressmen next year.
they are:
- Changes to the minimum wage rule, which will be restricted to the parameters of the fiscal framework;
- Changes in the salary bonus, which will be limited to those earning up to R$2640 adjusted for inflation, until reaching 1.5 minimum wages;
- Changes in military retirement, with the establishment of a minimum age and limitations on the transfer of pensions;
- Regulation of the salary cap in the public service;
- Allocation of 50% of commission amendments to health, and growth below the spending limit of global amendments;
- Improvement of fraud and distortion control mechanisms.
Haddad also announced the increase in the Income Tax (IR) exemption limit, which is currently R$2,824, to R$5,000 per month. To offset the tax impact, the government proposed a minimum tax for individuals who receive more than R$50,000.
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According to the Minister of Finance, .
See below how the PEC, PLC and PL are processed in the National Congress:
Proposed Amendment to the Constitution (PEC)
The Proposed Amendment to the Constitution (PEC) is the project that has the most complex process and is most difficult to approve in Parliament. Initially, the text begins to be processed by the Constitution, Justice and Citizenship Commission (CCJ), which analyzes the admissibility of the proposal.
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The PEC cannot violate the fundamental clauses of the Constitution: federative form of State; direct, secret, universal and periodic vote; separation of Powers; and the individual rights and guarantees of citizens.
If admitted to the CCJ, the PEC goes to a special commission, in which its merits will be analyzed – this commission can change the original project. The collegiate has a period of 40 plenary sessions to vote on the text. The deadline for presenting amendments ends in the first ten sessions.
Approved by the special committee, the PEC can now be analyzed in plenary. The project will only be approved if it receives the support of at least ⅗ of the deputies (308) and senators (49), in two rounds of voting in both Houses (House and Senate).
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After the project is approved in one House, the PEC is forwarded to the other. If the text is approved by the Chamber and Senate without changes, it is promulgated in the form of a Constitutional Amendment in a session of the National Congress.
If there is any change in the text, the PEC must return to the House in which it began to be processed. Changes made in one House require new assessment by another, successively.
Complementary Law Project (PLC)
A Complementary Law Project (PLC) can be presented by any deputy or senator, by a committee of the Chamber, Senate or Congress, by the President of the Republic, by the Attorney General of the Republic, by the Federal Supreme Court (STF), by courts superiors and citizens.
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These projects define rules for cooperation between the Union, the states, the Federal District and the municipalities, on topics specified by the Constitution.
The processing of the PLC begins in the Chamber of Deputies – with the exception of those presented by senators, who, naturally, begin in the Senate.
The Senate functions as a “Review House” for projects initiated in the Chamber, and vice versa. If the Chamber text is modified in the Senate, it returns to the Chamber. Likewise, if a Senate project is changed by deputies, it goes back to the Senate. In general terms, the House in which the project began has the final say on its content, being able to accept or not the changes made in the other House.
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The PLC is distributed to the committees according to the issues it deals with. In addition to the merit commissions, there are two others that can analyze merit and/or admissibility – the Finance and Taxation commissions (analysis of financial and budgetary adequacy) and the Constitution and Justice (constitutionality analysis). All PLCs must also go through the plenary.
Projects that deal with matters relating to more than three merit committees are sent to a special committee created specifically to analyze them. This commission replaces all others.
The PLC can still be processed urgently if the plenary approves a request for this purpose. Roughly speaking, urgent approval depends on the agreement of leaders. The urgent project can be voted quickly in the plenary, without the need to go through committees. The rapporteurs of the proposal in the committees give an oral opinion during the session, allowing immediate voting.
The President of the Republic can also request an urgent vote on a project of his initiative. In this case, the proposal must be voted on within 45 days or it will block the agenda of the Chamber or Senate.
To be approved, the PLC must obtain an absolute majority of votes in favor (257 in the Chamber and 41 in the Senate).
PLCs approved in both Houses of Congress are sent for presidential sanction. The President of the Republic has 15 working days to sanction or veto the text – the veto can be total or partial.
All presidential vetoes must be voted on by Congress. To reject a veto, the votes of 257 deputies and 41 senators are required.
Ordinary Law Project (PL)
A Bill (PL) also begins its processing in the Chamber of Deputies – when presented by senators, it begins in the Senate. As in the PLC, the Senate functions as a reviewing House for projects initiated in the Chamber, and vice versa.
Most projects are processed conclusively, which means that, if they are approved by the Chamber committees, they go to the Senate without having to go through the plenary. However, if 52 deputies appeal, the project will go to the House plenary.
The PL may be processed urgently if the plenary approves a request for this purpose. Under an emergency regime, the PL can be voted quickly in the plenary, without the need to go through committees. The rapporteurs of the proposal in the committees give an oral opinion during the session, allowing immediate voting.
PLs are approved with a simple majority of votes in both Houses (257 deputies and 41 senators). Bills approved in both Houses are sent to the President of the Republic for sanction. The president has 15 working days to sanction or veto – partially or completely. All vetoes are voted on by Congress.
(With information from Agência Câmara and Agência Senado)
