By 323 votes in favor, the Chamber of Deputies approved, last night (9) in the second round, the base text of the Proposal for Amendment to the Constitution (PEC), which allows the payment of precatoria in installments and changes the calculation of the spending ceiling , releasing R$ 91.5 billion for next year’s Budget. The text had 172 votes against and one abstention. Deputies analyze four highlights of the text.
In the early evening, the Plenary concludes the discussion of the highlights and approved the PEC in first round. After an agreement that broke the interstice (interval) of five sessions between the first and second round, the deputies discussed the text for just over an hour and voted on the base text in just 18 minutes.
The result was announced shortly before 22:00. Now, the Chamber has started to vote on four highlights in the second round. At this stage, only suppressive highlights or amendments are allowed, which remove points from the PEC, or from the wording, which adjust the wording without changing the merit of the text. The president of the House, Arthur Lira, stated that he intends to close the vote this evening.
The scoreboard on Tuesday showed an increase in the advantage of favorable votes in relation to the first round. Last week, the base text was approved by 312 votes in favor and 144 against, with just four votes beyond the 308 needed to pass changes to the Constitution.
The session lasts for almost ten hours. Throughout the afternoon, deputies voted for the highlights in the first round. Only one highlight, authored by the New Party, was rejected, removing from the PEC the possibility that the government send, together with the budget proposal, a special authorization authorizing the non-compliance with the golden rule, a kind of limit for the public debt . The other highlights were approved.
Understand the PEC of Precatório
The PEC defines the amount of annual expenses with court orders, corrects their amounts exclusively by the Selic rate and changes the way to calculate the spending ceiling.
According to the approved basic text, the precatories for the payment of debts of the Union related to the former Fund for the Maintenance and Development of Elementary Education and the Valorization of Teaching (Fundef), the current Fund for the Maintenance and Development of Basic Education and the Valorization of Professionals from Education (Fundeb), must be paid in three years, 40% in the first year, 30% in the second and 30% in the third year.
The approved wording includes the text of the special commission that discussed the proposal, according to which the limit of expenses with court orders will be valid until the end of the spending cap regime (2036). For next year, this limit will be defined by applying the Broad National Consumer Price Index (IPCA) accumulated to the amount paid in 2016 (R$ 19.6 billion).
The estimate is that the ceiling will be almost BRL 40 billion in 2022. Under current rules, government data indicate a payment with precatório of BRL 89 billion in 2022, compared to BRL 54.7 billion in 2021.
In practice, the PEC opens fiscal space in the Union Budget for the payment of the new assistance benefit created by the government, the Auxílio Brasil, which will have a monthly value of R$ 400.
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