The objective is to reduce mandatory spending on Social Security so that there is more money left for investment next year; The problem is that another 1 million people are waiting to retire and it is uncertain whether there will be enough funds for everyone
The government Lula decided to cut R$ 12.5 billion of spending on Social Security benefits in the 2024 Budget. The measure was approved by the CNPS (National Social Security Council), a body linked to the Ministry of Social Security and responsible for defining and evaluating social security guidelines.
The objective is to reduce mandatory spending on Social Security so that there is more money left over for investment next year. The projection also ignores the queue of the INSS (National Social Security Institute), today at 1.69 million people.
There is uncertainty as to whether there will be enough funds for everyone. In August, the CNPS approved two different versions for benefit-related expenses, according to documents obtained by the newspaper Folha de S.Paulo.
At a meeting on August 3, the board brought a presentation that indicated that the federal government would need R$895.7 billion to be able to pay social security benefits in 2024.
The CNPS members agreed with the values and produced the Resolution 1,154published in DOU (Official Gazette of the Union)on August 4, 2023.
On August 17, during another meeting, the CNPS decided to approve R$885.2 billion in expenses for INSS beneficiaries.
One new resolution on the topic was published on August 18, in GIVE. The new values were estimated based on a benefits review.
On August 31, the government presented the LOA (Annual Budget Law) project to Congress. Here’s the complete (PDF –24 MB) of the document.
INSS
O Power360 contacted the INSS to obtain a position on the change in the projected budget for Social Security benefits.
According to the authority, the review includes rulings from the TCU (Federal Audit Court) that indicate possible irregularities in the granting of benefits.
Here is the full note:
“The INSS informs that the budget projection is made by technical area and takes into account the rulings of the Federal Court of Auditors, which indicate the existence of irregularities.
“It is worth highlighting, however, that an interministerial working group was created by President Lula and measures will be taken based on the guidelines of this group.
“INSS reaffirms its commitment to combating fraud and minimizing errors to provide an excellent service to citizens.”
O Power360 also contacted the Ministries of Planning and Finance to get a response about the changes in the Budget, but there was no response until the publication of this report. The space remains open for demonstrations.
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