A proposal was put on the table among the options to reduce expenses; the combination may include FGTS, unemployment insurance and salary bonus
The federal government is studying the possibility of unifying benefits and labor mechanisms as a way to cut expenses. O Power360 found that part of the economic team put the possibility on the table, which will need to be discussed with the rest of the president’s team Luiz Inácio Lula da Silva (PT).
The perception is that the redesign of social benefits would be an opportunity to reduce expenses without having to end them – which would harm the popularity of federal management. Among the modalities that may undergo changes are the FGTS (Service Time Guarantee Fund), unemployment insurance and salary bonus.
Savings in resources would come because the processes for managing a set of programs in a unified way are cheaper than when they are all separated.
The priority of the team that takes care of expenses is to analyze the programs and benefits that would clearly present some type of irregularity and that need a review, found the Power360.
There is also the possibility of incorporating some funds and mechanisms linked to the labor market into social programs, such as Bolsa Família.
The spending review took the spotlight during the week after public statements by the Minister of Planning and Budget, Simone Tebet, on the need to speed up this process. The statements came at a time of market distrust regarding the government’s fiscal policy.
“We now have some homework on the expenditure side. If plans A, B, C and D are already being exhausted so as not to increase the tax burden due to revenue, from an expenditure perspective, we have plans A, B, C and D, which are being formulated by the team at the Ministry of Finance with the Ministry of Planning and Budget”, declared her on June 13th.
Another measure that is on the economic team’s radar is the review of Social Security for the military. Minister Tebet said it cost R$49.7 billion to public coffers in 2023.
O Power360 found that these measures considered more extreme should only be proposed after the municipal elections. Many congressmen will want to nominate candidates for city hall, city council and an association. An association with controversial actions should make processing in the Legislature difficult.
The government committed to balancing public accounts. The objective of the Minister of Finance, Fernando Haddad, is that expenditures during the year are equal to revenues, that is, a zero deficit is expected. In practice, it is necessary to increase revenue and cut expenses.
The government’s objective is criticized by market analysts. It turns out that few measures were taken to reduce expenses, only to increase revenue. The government itself recognizes this scenario.
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