Text expands the government’s power to suspend payment of amendments and revokes the new Dpvat; Pacheco took a seat to support the proposal
The senator (Republicanos-RS) was the only one to vote against the 1st project in the cuts package. The text sent by the government (PT) by senators this Thursday (Dec 19, 2024) and sent for sanction.
They were 72 votes in favor. The measure had the support of senators opposed to Lula, including the leader of the Opposition, senator (PL-RN).
The proposal establishes restrictions on the granting of tax credits in situations of deficit and, in practice, expands the Executive’s power to suspend the payment of amendments from congressmen – the target of disputes between the Three Powers in recent months. Understand this.
Read how each senator voted (click on the columns to reorder by name, party, state and vote):
The Republicans freed their senators to vote as they wanted. The other parties recommended a vote in favor, including PT and PL.
PACHECO VOTE
The president of the Senate, (PSD-MG), took a seat to position himself in favor of the proposal. In general, whoever presides over the session does not vote, but the senator wanted to register his support.
To this end, the senator (PDT-MA) took over the session momentarily so that Pacheco could vote.
Among the main points, the PLP (Complementary Bill) proposes the blocking and contingency of congressmen’s amendments up to the same proportion as those applied to other non-mandatory government expenses, that is, up to 15% of the total value.
END OF THE NEW DPVAT
The senators maintained the section that repeals the recently created Spvat (Mandatory Insurance for the Protection of Victims of Traffic Accidents), a replacement for Dpvat.
The revocation was included during the process in the Chamber, against the Lula government’s wisheswhich will lose revenue with the end of the insurance.
The end of Spvat was a way of ensuring the votes of opposition deputies to the government.
OTHER CHANGES
The approved project also allows that, between 2025 and 2030, the financial surplus of some funds can be used to amortize public debt. Here is the list:
- FDD (Fund for the Defense of Diffuse Rights);
- Funad (National Anti-Drug Fund);
- FMM (Merchant Marine Fund);
- Fnac (National Civil Aviation Fund;
- Funset (National Traffic Safety and Education Fund);
- Army Fund;
- Aeronautical Fund; and
- Naval Fund.
The original text left the application of the positive balance free, but the rapporteur in the Chamber chose to delimit the destination, which was maintained by the Senate.
OTHER PROJECTS IN THE PACKAGE
The approval is part of the government and Congress’ effort to approve the priorities of the economic team led by Finance Minister, Fernando Haddad.
The package with 4 proposals is designed to save R$327 billion by 2030. The approval came on another busy day in the financial market. The dollar closed R$ 6,10after recording a historic maximum of R$ 6,21.
There are 2 other proposals that should pass through the Senate this week, before voting on the Budget Law for 2024.
They are:
- salary bonus (PEC ) – establishes a gradual cut in access to the benefit, separates income from the and changes the way in which the value of the (Constitutional Fund of the Federal District);
- minimum wage (PL ) – the real gain from the minimum wage is a maximum of 2.5% above inflation. The project also tightens rules for granting the BPC.
There is still the . The analysis, however, for 2025.
The project creates a transition phase that lasts until 2031, when it will be necessary to comply with the minimum contribution time of 35 years and a toll of 9% on the time remaining for the reserve. If approved, from 2032, the 55-year rule will come into full force. Today, military personnel can retire with full salary after 35 years of service.
