Commission approves expanding use of the social fund and accelerating oil auction

by Andrea
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The Joint Commission of the Provisional Measure on Changes in the Pre-Salt Social Fund approved on Tuesday (24) the final report. The proposal makes it possible to accelerate an oil auction and allows the use of fund resources to confront public calamities and housing programs.

The board approved the opinion of Deputy José Piante (MDB-PA). The MP now goes to the analysis of the House Plenary and then the Senate.

As CNN It showed, after negotiations between executive and congress, the in areas adjacent to the fields already in pre-salt production. With the endorsement to carry the auction, the economic team estimates a collection of about $ 15 billion.

The text approved on Tuesday, however, does not deal with the inclusion of Electricity Social Tariff – Possibility that was considered by the government, but had no consensus and, therefore, was discarded.

Congress needs to complete the MP vote in the two legislature houses, until 3 July – period in which the proposal will be valid. Because it has the force of law, the MP’s determinations are already valid, but it is still necessary to endorse the legislature so that the MP becomes definitive law.

Social background

MP allows new uses of oil exploration. The fund was created in December 2010 by the Pre-Salt Law to direct resources to social and regional development through programs and projects in the areas of combating poverty and development.

The use of the fund for mitigation and adaptation to climate change was already provided by law. The MP added the possibility of use in the “facing the social and economic consequences of public calamities” and to support social infrastructure and social interest initiatives.

“R $ 15 billion are guaranteed in increments to the Minha Casa Program and with a differential in the application of resources, in which we are establishing an important step in the National Congress in reducing regional inequalities: we are indicating 30% of these resources to be applied in the northeast of Brazil, 15% in the north of the country and 10% in the Midwest of Brazil,” said the rapporteur at the meeting.

By current legislation, fund resources can only be directed to programs in the areas of education, culture, sports, public health, science and technology, environment and adaptation to climate change.

The measure also determines new competences to the Social Fund Deliberative Council (CDFS) and establishes transparency rules, such as the publication of the Annual Application Plan and the Annual Social Fund report with “information about all sources linked to it and its budget and financial execution”.

The approved report also raises from 50% to 55% the percentage of linking of the Social Fund resources to the areas of education and health.

The MP also authorizes the hiring of an official financial institution of the Union to manage the resources of the Social Fund. According to the government, the changes provided for in the MP miram to “effective the fund” of the fund.

“The initial objectives of the fund should be reviewed in order to enhance their macroeconomic, financial, social and environmental effects,” the executive said in justifying the MP.

Changes

In addition to the viability for the oil auction, the rapporteur also accepted congressmen amendments. Among the changes is the permission for social fund resources to be applied to projects to develop water infrastructure, food and nutritional security, and the defense of the rights and interests of indigenous peoples.

It was also included the possibility that resources are used in the management of the Unified Social Assistance System (SUAS).

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