By Maria Carolina Marcello
BRASÍLIA (Reuters) – The Chamber of Deputies approved last Tuesday night, in a second round, the main text of the PEC dos Precatórios, a priority measure for the government as it opens up fiscal space to enable the payment of the new social program Auxílio Brasil, but imposed a defeat on the Executive in relation to the golden rule.
The approval of the basic text took place despite an earlier decision by the Federal Supreme Court (STF) that suspended the payment of the rapporteur’s amendments, seen as decisive in the articulations around the matter.
On the other hand, the Executive suffered a defeat in the PEC vote with the approval of an amendment in the first round that will prevent an intended relaxation of the golden rule, keeping the government hostage to congressional approval in case it needs to break the rule.
Approved in the 2nd round by 323 votes to 172, the Proposed Amendment to the Constitution (PEC) will give the Executive room to put Brazil Aid into practice to replace Bolsa Família. Added to temporary benefits, the new social program will offer 400 reais to low-income families by the end of 2022, an election year in which President Jair Bolsonaro is expected to seek reelection.
The approval in the 2nd round was by a greater margin than in the vote in the 1st, when the proposal received only 4 votes above the 308 needed for approval.
The PEC changes the rule for the payment of court orders, which are government debts whose payment was determined by the Court.
During the plenary discussion on Tuesday, critics referred to the proposal as the “default” PEC and denounced the use of the so-called rapporteur’s amendments as a bargaining chip for votes in favor of the proposal.
In this sense, they considered correct the decision of the Minister of the Federal Supreme Court (STF) Rosa Weber, accompanied by the majority of the court on trial in the virtual plenary, which suspended the payment of these amendments, whose destination is defined at the discretion of the Budget rapporteur and the presidents House and Senate and difficult to trace, which gave rise to the nickname “secret budget”.
“People call it a ‘secret budget’, and there are some who think it’s bad, but it’s secret. If they don’t tell where the people’s money goes, from the Brazilian, who wants to know, it’s secret”, said deputy Vinicius Poit (Novo-SP) from the gallery.
Government officials, however, considered the Court’s decision an interference in another Power, and argued that it is Congress’ prerogative to define budgetary allocations.
“With all the bows that the Federal Supreme Court deserves with its magistrates, with its ministers, this magic, this decision, today… it hurts to death the prerogatives of the National Congress here! We are the ones who vote! We are the legitimate representatives of society! If there is any mistake, we are the ones who should correct it”, said Deputy Hugo Leal (PSD-RJ).
GOLDEN RULE
Before approving the main text of the PEC in the 2nd round, the Chamber analyzed more than ten amendments pending analysis in the 1st round, at which time deputies approved a highlight that removes from the text of the provision that would allow “bypassing” the golden rule through budget law and not just by supplementary or special credits with a precise purpose with the authorization of Congress, as determined by the Constitution today.
The golden rule prevents the government from going into debt to pay current expenses such as salaries, social benefits and the cost of the public machine. To break the rule, the government needs to request authorization from the National Congress.
The PEC had a device that allowed flexibility in compliance with the golden rule, withdrawn in the vote on Tuesday.
After the analysis of highlights in the second round is concluded, the PEC will proceed to the Senate.
(Edited by Pedro Fonseca)
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