Find out what PEC is that delays payment of precatory

The House of Representatives prepares to vote this 3rd (15.Jul.2025) the PEC (Proposal for Amendment to the Constitution), which establishes a limit for the payment of precatory – department of the executive in which no further appeal – of states and municipalities. The text also opens a new deadline for special installment of debt of local governments with the RGPS (General Regime of Social Security) and its own social security regimes. In practice, the measure delay the discharge of precatory.

The text will be analyzed initially on a special commission of the house at 10am. If approved, it goes to the House Plenary for a 2 -shift vote. THE Poder360 It has found that there is agreement for the proposal to be voted without any change in the Senate upon returning to the upper house.

The mayor, (Republicans-PB), placed the PEC on the plenary agenda for analysis even before the conclusion in the Special Commission. The text is authored by the senator (MDB-PA) and has the deputy (MDB-SP) as responsible for the opinion at Casa Baixa.

Published in Poder360On June 8, 2025, the rapporteur came out in defense of the proposal. Used as an argument data from (National Council of Justice). According to the agency, the balance that municipalities have to pay for precatory (full – PDF – 16 MB) of R $ 49.5 billion to R $ 82.9 billion In the last 4 years. This is an increase of 67%.

Below, this digital newspaper details the main points of the proposalfocused above all to municipalities.

Payment of precatory

The opinion ( – PDF – 350 KB) sets limits for states and municipalities to compromise resources in the discharge of precatory, based on the size of the accumulated debt. There is an interval of 1% to 5% of the RCL (net current revenue).

The report defines that this compromise limit can rise staggered by 0.5 percentage point. It was a claim of the municipalities. A review will be made every 10 years.

There will be the creation of a federal credit line focused on the discharge of the precatory. Another rule is that all forms of discharge adopted by local governments, such as compensations and agreements, should be considered in the calculation to comply with the annual payment plan.

Renegotiation

The proposal ensures that municipalities renegotiate debts with the Union within 30 years, in a model similar to Propag (State Debt Payment Plan). It also makes room for the installment of social security debts to be made within 25 years, provided that it is authorized by approved law.

In the case of social security debts, the installment can be made within 300 months, if authorized by specific law approved in the Municipality.

Monetary correction

It also changes the index to be used in the monetary correction of the precatory. The following is the IPCA (National Consumer Price Index), responsible for measuring the official inflation of Brazil, whenever it is below Selic, the basic interest rate.

The update until the completion of the payment would be made from simple interest of 2% per year, starting from August 1, 2025.

The measure is to contain debt growth, as the basic interest rate and the accumulated IPCA in the 12 months closed in June.

Fiscal space

Municipalities gain more freedom to use the accumulated surplus in public funds. PEC authorizes the use of these surplus resources to invest in areas such as health, education and the environment by 2032.

Breath for the Union

In the opinion, Whale Rossi also added a paragraph that establishes a new classification for union expenses with precatory and RPV (Small Value Requisition) – judicial payment of late amounts of up to 60 minimum wages. Here’s how it would be:

• main obligation – Accounting as primary expense. This part enters the fiscal goal;
• interest and monetary correction – would be classified as financial expense. In practice, it is outside the parameters of the tax framework.

Clock pump

In December 2023, the Supreme Court (STF) that the government regularizes the stock of precatory until 2026. From 2027, the rule will end, which gave a breakthrough for the government.

The new open space would give the president’s government (PT) breath, who spend a whole R $ 516.3 billion With court judgments from 2026 to 2029. Next year alone, it will be $ 116 billion.

Criticism

Experts consulted by Poder360 They evaluate that the measure puts in check the country’s credibility regarding fiscal responsibility and legal certainty. Read below:

• José Ronaldo de Souza, chief economist of – “The PEC 66 of 2023 is harmful to the image of Brazil because it transmits the idea that the country does not fully honor its judicial obligations, which compromises the confidence in institutions and removes investors. By relaxing the payment of debts recognized by justice, the proposal reinforces the perception of legal uncertainty and fiscal instability, elements that discourage the business environment and weaken the credibility of the Brazilian state and international scenario.”;
• Gabriel Leal de Barros, chief economist of – “It’s bad for the country, it creates a 2027 clock bomb, additional to so many others already armed. It is another proposal that aims to broaden the fiscal space artificially, falsifying a solution to federal and subnational tax problems.”.