Maneuver frees up space to pay R$3.6 billion in amendments to Congress and avoids cost containment, according to Folha de S.Paulo’s Access Law request
The president’s government Luiz Inácio Lula da Silva (PT) changed Social Security data to reduce by approximately R$ 12 billion the projection of benefit expenses. The lower estimate helps the Executive to honor the payment of R$3.6 billion of R$5.6 billion in vetoed Budget amendments to Congress, in addition to avoiding spending containment.
The data was obtained by the newspaper Folha de S.Paulovia Access to Information Law. The lower estimate, incorporated in the Bimonthly Revenue and Expense Report released on May 22nd, enabled the Executive to undo the blockade of R$2.9 billion made on March 22nd.
The Bimonthly Income and Expense Report is prepared by the Ministry of Planning and Budget. On the spending side, there was an upward revision to the Social Security estimate. It should be R$917.8 billion, compared to R$914.2 billion announced in March. The increase is R$7.9 billion.
The estimate takes into account the execution of expenses until April 2024 and a vegetative growth of 0.64% per month, due to the reduction in waiting lines.
However, 4 days later, Dirben (Benefits Directorate) and the INSS Presidency’s advisory department issued a technical note suggesting the use of a vegetative growth rate of 0.17%. The percentage represents ¼ of the previous one.
PENSION REFORM
On April 28, the Power360 published that the trajectory of the RGPS (General Social Security Regime) leads to the need for a new reform of the system. In 2019, during the Presidency of Jair Bolsonaro (PL), Congress enacted the last change in the rules.
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