Deputies signaled to the government dissatisfaction with proposals that can reach expensive issues on the left in a pre-election year
PT deputies have made the government dissatisfaction with to compensate for a retreat in the increase in IOF rates (Tax on Financial Operations). The bench is against changes in social spending, such as the detachment of the minimum wage of the BPC (continued benefit benefit) and the revision of health and education floors.
The two measures were presented by the House summit as alternatives to the IOF and are still being analyzed by the government. Allies of the President (PT) say that the petista did not decide to support the proposals. Nor did it discard them.
Deputies heard by Poder360 They evaluate that the themes are very expensive on the left and there is difficulty to advance these issues in a pre-election year. They question Lula’s speech in his reelection campaign if the government supports measures that can reduce resources for health and education.
The detachment of health and education spending, which have a mandatory floor in the Constitution, is seen as an essential part for the recovery of public accounts in the medium term.
The reduction of Union transfers to Fundeb (Fund for Maintenance and Development of Basic Education and Valorization of Education Professionals) is also criticized, but must face less rejection by the bench.
The petist deputies accept that the percentage is limited passed, provided that there is no reduction of the current level. The union expense with Fundeb will be R $ 58.8 billion by 2025 – 18.3% of 20.3% compared to 2024. The idea is to reduce the pace of this growth.
PT’s resistance indicates that the government must have difficulties even with the allied base to forward the proposals in Congress. Therefore, Lula has been trying to build a path to the presidents of the House (Republicans-PB), and Senate, (União Brasil-AP), so that the proposals are more likely to approve and the burden does not fall just on it.
The government wants to advance the cut of tax exemptions, as it could give more immediate relief to help with the accounts in 2025.
“Every benefit we give to the productive sector and entrepreneurs, you give for a year. When you want to take it, it’s very difficult. They want it to be permanent.”said Lula in an interview with journalists on Tuesday (3.Jun.2025).
Administrative reform
During discussions with the government, Motta suggested that such measures be included in the Administrative Reform proposal. The deputy (PSD-RJ) is the coordinator of the working group that discusses the theme in the House.
Although Pedro Paulo has already declared not wanting to use the proposal to make a fiscal adjustment, petistas fear that there is pressure from parties of the center in this regard. There is a fear, according to congressmen, that the proposal for reform of the state becomes a liberal agenda that harms workers.