Rapporteur softens changes in BPC and excludes DF Constitutional Fund from spending cuts

The rapporteur of one of the bills (PL) of the spending cut package sent by the government, deputy Isnaldo Bulhões (MDB-AL), presented this Wednesday (18) his opinion on the matter and decided to ease the rule changes initially foreseen by the government in the granting of the Continuous Payment Benefit (BPC).

Bulhões also excluded changes in the readjustment of the Constitutional Fund of the Federal District.

Currently, BPC serves the elderly and people with disabilities with an income of up to 1/4 of the minimum wage per person in the family.

In the project sent, the government considers the amount already acquired with other benefits as part of the income — which, in practice, can limit the payment and prevent more than one person from the same family from having access to the program. The rapporteur must change this rule.

DF Constitutional Fund

Already at the DF fund, the government predicted savings of R$12 billion over the next 15 years.

The Constitutional Fund is an amount paid by the Union to the Federal District to pay for public security, education and health services to federal public bodies based in the capital and the 130 embassies in Brasília and surrounding areas.

It is readjusted annually based on the Union’s Net Current Income. The Treasury defends changing the criteria, using inflation instead.

The rapporteur’s opinion maintained the limit proposed by the government on the increase in the minimum wage. Currently, the valuation policy takes into account the sum of inflation measured by the National Consumer Price Index (INPC) in 12 months until November with the real growth index of the Gross Domestic Product (GDP) from two previous years.

The rule presented by the government in the spending cut package indicates that the increase in the minimum wage continues to provide for an increase above inflation based on GDP, but will be limited to the growth of expenses within the fiscal framework, which grow at a maximum of 2.5% per year.

According to the government, the new rule could generate savings of R$109.8 billion between 2025 and 2030, but could mainly impact retirees, pensioners and those benefiting from social programs linked to the minimum.

The proposal presented by Isnaldo should be voted on this evening in the Chamber of Deputies.

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